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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2012	Feb. 25, 2013	Jun. 30, 2012
Document - Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Trading Symbol	lpsn
Entity Registrant Name	LIVEPERSON INC
Entity Central Index Key	0001102993
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		55,845,293
Entity Public Float			$ 966,831,842

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 103,339	$ 93,278
Accounts receivable, net of allowance for doubtful accounts of $708 and $688, in 2012 and 2011, respectively	23,830	20,999
Prepaid expenses and other current assets	6,369	5,390
Deferred tax assets, net	2,616	2,342
Total current assets	136,154	122,009
Property and equipment, net	17,495	13,879
Intangibles, net	15,681	1,095
Goodwill	32,645	24,090
Deferred tax assets, net	4,183	2,829
Deferred implementation costs, net of current	240	247
Security deposits	669	356
Other assets	1,509	1,546
Total assets	208,576	166,051
Current liabilities:
Accounts payable	11,125	8,258
Accrued expenses	17,911	12,019
Deferred revenue	6,525	5,378
Total current liabilities	35,561	25,655
Deferred revenue, net of current	1,263	1,152
Other liabilities	1,509	1,546
Total liabilities	38,333	28,353
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.001 par value per share; 5,000,000 shares authorized, 0 shares issued and outstanding at December 31, 2012 and 2011
Common stock, $.001 par value per share; 100,000,000 shares authorized, 55,948,924 shares issued and outstanding at December 31, 2012; 54,090,344 shares issued and outstanding at December 31, 2011	56	54
Additional paid-in capital	252,320	226,113
Accumulated deficit	(81,780)	(88,135)
Accumulated other comprehensive loss	(353)	(334)
Total stockholders' equity	170,243	137,698
Total liabilities and stockholders' equity	$ 208,576	$ 166,051

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Consolidated Balance Sheets [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 708	$ 688
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	55,948,924	54,090,344
Common stock, shares outstanding	55,948,924	54,090,344

Consolidated Statements Of Income - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
Consolidated Statements Of Income - USD ($) $ in Thousands	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Consolidated Statements Of Income [Abstract]
Revenue	$ 42,475	$ 39,670	$ 38,505	$ 36,759	$ 36,509	$ 34,347	$ 31,851	$ 30,382	$ 157,409	$ 133,089	$ 109,862
Operating expenses:
Cost of revenue	10,128	9,036	8,492	7,923	8,047	8,368	8,685	8,095	35,579	33,195	29,640
Product development	8,170	8,005	7,219	6,657	5,563	5,266	5,016	4,377	30,051	20,222	15,711
Sales and marketing	12,795	12,713	13,017	11,089	10,738	9,907	9,379	8,860	49,614	38,884	32,835
General and administrative	8,823	7,316	9,342	6,125	6,009	5,689	5,386	3,960	31,606	21,044	17,077
Amortization of intangibles	119	11	11	77	76	11	11	11	218	109	259
Total operating expenses	40,035	37,081	38,081	31,871	30,433	29,241	28,477	25,303	147,068	113,454	95,522
Income from operations	2,440	2,589	424	4,888	6,076	5,106	3,374	5,079	10,341	19,635	14,340
Other income (expense):
Financial (expense) income	206	22	(254)	331	(132)	(780)	208	156	305	(548)	(106)
Interest income	15	19	21	16	15	18	16	14	71	63	99
Total other income (expense), net	221	41	(233)	347	(117)	(762)	224	170	376	(485)	(7)
Income before provision for income taxes	2,661	2,630	191	5,235	5,959	4,344	3,598	5,249	10,717	19,150	14,333
Provision for income taxes	1,169	1,030	51	2,112	2,083	1,609	1,402	2,018	4,362	7,112	5,074
Net income	$ 1,492	$ 1,600	$ 140	$ 3,123	$ 3,876	$ 2,735	$ 2,196	$ 3,231	$ 6,355	$ 12,038	$ 9,259
Basic net income per common share	$ 0.03	$ 0.03	$ 0.00	$ 0.06	$ 0.07	$ 0.05	$ 0.04	$ 0.06	$ 0.11	$ 0.23	$ 0.18
Diluted net income per common share	$ 0.03	$ 0.03	$ 0.00	$ 0.06	$ 0.07	$ 0.05	$ 0.04	$ 0.06	$ 0.11	$ 0.22	$ 0.18
Weighted average shares outstanding used in basic net income per common share calculation	55,892,061	55,688,824	55,146,901	54,419,498	53,563,396	53,109,824	52,735,556	52,080,363	55,292,597	52,876,999	50,721,880
Weighted average shares outstanding used in diluted net income per common share calculation	57,589,248	57,760,868	57,150,256	56,389,729	55,756,350	55,736,089	55,553,247	54,805,222	57,131,041	55,008,742	52,907,541

Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Consolidated Statements Of Comprehensive Income [Abstract]
Net income	$ 6,355	$ 12,038	$ 9,259
Foreign currency translation adjustment	(19)	(35)	(127)
Comprehensive income	$ 6,336	$ 12,003	$ 9,132

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 10, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A7
-Appendix A

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 87-21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28, 29, 30
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

Consolidated Statements Of Stockholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Total
Balance at Dec. 31, 2009	$ 49,000	$ 190,692,000	$ (109,432,000)	$ (172,000)	$ 81,137,000
Balance (in shares) at Dec. 31, 2009	49,435,682
Repurchase of common stock	$ (534,496)	(3,649,000)			$ (3,649,000)
Common stock issued upon exercise of stock options (in shares)	2,843,547				2,843,547
Common stock issued upon exercise of stock options	$ 3,000	11,407,000			$ 11,410,000
Stock-based compensation		5,142,000			5,142,000
Common stock issued under Employee Stock Purchase Plan (in shares)	9,109
Common stock issued under Employee Stock Purchase Plan		74,000			74,000
Tax benefit from exercise of employee stock options		1,397,000			1,397,000
Net income			9,259,000		9,259,000
Other comprehensive loss				(127,000)	(127,000)
Balance at Dec. 31, 2010	$ 52,000	205,063,000	(100,173,000)	(299,000)	$ 104,643,000
Balance (in shares) at Dec. 31, 2010	51,753,842
Common stock issued upon exercise of stock options (in shares)	2,278,451				2,278,451
Common stock issued upon exercise of stock options	$ 2,000	9,706,000			$ 9,708,000
Stock-based compensation		6,771,000			6,771,000
Common stock issued under Employee Stock Purchase Plan (in shares)	58,051
Common stock issued under Employee Stock Purchase Plan		572,000			572,000
Tax benefit from exercise of employee stock options		4,001,000			4,001,000
Net income			12,038,000		12,038,000
Other comprehensive loss				(35,000)	(35,000)
Balance at Dec. 31, 2011	$ 54,000	226,113,000	(88,135,000)	(334,000)	$ 137,698,000
Balance (in shares) at Dec. 31, 2011	54,090,344
Common stock issued upon exercise of stock options (in shares)	1,634,658				1,634,658
Issuance of common stock in connection with LookIO acquisition, (in shares)	139,939				1,127,985
Common stock issued upon exercise of stock options	$ 2,000	8,316,000			$ 8,318,000
Stock-based compensation		10,715,000			10,715,000
Common stock issued under Employee Stock Purchase Plan (in shares)	83,983
Common stock issued under Employee Stock Purchase Plan		1,088,000			1,088,000
Tax benefit from exercise of employee stock options		4,104,000			4,104,000
Net income			6,355,000		6,355,000
Other comprehensive loss				(19,000)	(19,000)
Balance at Dec. 31, 2012	$ 56,000	252,320,000	$ (81,780,000)	$ (353,000)	170,243,000
Balance (in shares) at Dec. 31, 2012	55,948,924
Issuance of common stock in connection with LookIO acquisition		$ 1,984,000			$ 1,984,000

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities:
Net income	$ 6,355	$ 12,038	$ 9,259
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	10,715	6,771	5,142
Depreciation	7,329	6,563	5,791
Amortization of intangibles	580	1,029	1,486
Provision for doubtful accounts, net	20	290	166
Deferred income taxes	(2,871)	229	832
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(664)	(4,798)	(6,391)
Prepaid expenses and other current assets	(1,086)	665	(2,687)
Deferred implementation costs	7	(84)	(28)
Security deposits	(208)	146	(174)
Other assets		116
Accounts payable	2,920	1,451	45
Accrued expenses	3,654	211	1,224
Deferred revenue	1,258	447	884
Net cash provided by operating activities	28,009	25,074	15,549
Cash flows from investing activities:
Purchases of property and equipment, including capitalized software	(11,221)	(7,268)	(8,002)
Acquisition of Amadesa technology assets	(10,798)
Net cash used in investing activities	(31,461)	(7,343)	(8,886)
Cash flows from financing activities:
Repurchase of common stock			(3,649)
Excess tax benefit from the exercise of employee stock options	4,104	4,001	1,397
Proceeds from issuance of common stock in connection with the exercise of options	9,406	10,280	11,484
Net cash provided by financing activities	13,510	14,281	9,232
Effect of foreign exchange rate changes on cash and cash equivalents	3	(70)	(131)
Net increase in cash and cash equivalents	10,061	31,942	15,764
Cash and cash equivalents at the beginning of the period	93,278	61,336	45,572
Cash and cash equivalents at the end of the period	103,339	93,278	61,336
NuConomy [Member]
Cash flows from investing activities:
Acquisition of business			(789)
Proficient [Member]
Cash flows from investing activities:
Acquisition of business	(77)	$ (75)	$ (95)
Engage [Member]
Cash flows from investing activities:
Acquisition of business	(8,465)
LookIO [Member]
Cash flows from investing activities:
Acquisition of business	$ (900)

Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) $ in Thousands		12 Months Ended
	Jun. 13, 2012	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Supplemental disclosure of non-cash investing activities:
Capitalized equipment related to the Company's co-location facility		$ 745	$ 1,631	$ 1,259
Net cash paid for income taxes		1,556	2,579	3,800
Share-based compensation		10,715	6,771	5,142
Costs related to earn out litigation		77	$ 75	$ 95
Engage [Member]
Supplemental disclosure of non-cash investing activities:
Costs related to earn out		$ 1,660
LookIO [Member]
Supplemental disclosure of non-cash investing activities:
Shares issued In connection with acquisition of Look.io, Shares	109,517	139,939
Shares issued In connection with acquisition of Look.io, Value	$ 1,984
Potential shares of common stock in addition to purchase price	30,422	30,422
Share-based compensation	$ 149

Summary Of Operations And Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Summary Of Operations And Significant Accounting Policies [Abstract]

Summary Of Operations And Significant Accounting Policies

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(1) Summary of Operations and Significant Accounting Policies

(a) Summary of Operations

LivePerson, Inc. (the “Company” or “LivePerson”) provides online engagement solutions offering a cloud-based platform which enables businesses to proactively connect with consumers through chat, voice, and content delivery, across multiple channels and screens, including websites, social media, and mobile devices. The Company’s engagements are driven by insights derived from a broad set of consumer and business data, including historical, behavioral, operational, and third party data. Each engagement is based on proprietary analytics and a real-time understanding of consumer needs and business objectives. The Company’s products, coupled with its domain knowledge and industry expertise, have been proven to maximize the effectiveness of the online channel — by increasing sales, as well as consumer satisfaction and loyalty ratings for their customers, while also enabling their customers to reduce consumer service costs.

The Company monitors and analyzes valuable online consumer behavioral data on behalf of its customers. Spanning the breadth of an online visitor session starting from an initial keyword search, through actions on their customer’s website, and even into a shopping cart and an executed sale, this data enables the Company to develop unique insights into consumer behavior during specific transactions within a customer’s user base.

The Company’s primary revenue source is from the sale of LivePerson services to businesses of all sizes. The Company also offers an online marketplace that connects independent service providers (“Experts”) who provide information and knowledge for a fee via real-time chat with individual consumers (“Users”).

LivePerson was incorporated in the State of Delaware in November 1995 and the LivePerson service was introduced in November 1998. In April 2000, the company completed an initial public offering and is currently traded on the Nasdaq Global Select Market and the Tel Aviv Stock Exchange. LivePerson is headquartered in New York City with offices in Atlanta, London, Melbourne, San Francisco, Santa Monica and Tel Aviv.

(b) Principles of Consolidation

The consolidated financial statements reflect the operations of LivePerson and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

The preparation of the consolidated financial statements in accordance with accounting principles generally accepted in the U.S. requires the Company’s management to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the period. Significant items subject to such estimates and assumptions include the carrying amount of goodwill, intangibles, stock-based compensation, valuation allowances for deferred income tax assets, accounts receivable, the expected term of a customer relationship, and accruals. Actual results could differ from those estimates.

(d) Cash and Cash Equivalents

The Company considers all highly liquid securities with original maturities of three months or less when acquired to be cash equivalents. Cash equivalents, which primarily consist of money market funds, are recorded at cost, which approximates fair value.

(e) Property and Equipment

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets, generally three to five years for equipment and software. Leasehold improvements are depreciated using the straight-line method over the shorter of the lease term or the estimated useful life of the asset. Total depreciation for the years ended December 31, 2012, 2011 and 2010 was $7,329, $6,563, and $5,791, respectively.

(f) Impairment of Long-Lived Assets

In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10, “Accounting for the Impairment or Disposal of Long-lived Assets,” long-lived assets, such as property, plant and equipment and purchased intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. In July 2012, the FASB issued ASU No. 2012-02, “Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment.” This ASU states that an entity has the option first to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount in accordance with Codification Subtopic 350-30, Intangibles—Goodwill and Other, General Intangibles Other than Goodwill. Recoverability of assets to be held and used is measured by a comparison of the carrying value of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying value of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying value of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying value or the fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. The Company determined that it is not more-likely that the fair value of the indefinite-lived intangible assets is less than their carrying amount.

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(1) Summary of Operations and Significant Accounting Policies – (continued)

(g) Accounts Receivable

Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on historical write-off experience. The Company reviews its allowance for doubtful accounts monthly. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. All other balances are reviewed on a pooled basis. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance sheet credit exposure related to its customers.

(h) Revenue Recognition

The majority of the Company’s revenue is generated from monthly service revenues and related professional services from the sale of the LivePerson services. Because the Company provides its application as a service, the Company follows the provisions of FASB ASC 605-10-S99, “Revenue Recognition” and ASC 605-25, “Revenue Recognition with Multiple-Element Arrangements.” The Company charges a monthly fee, which varies by type of service, the level of customer usage and website traffic, and in some cases, the number of orders placed via the Company’s online engagement solutions.

For certain of the Company’s larger customers, the Company may provide call center labor through an arrangement with one or more of several qualified vendors. For most of these customers, the Company passes the fee it incurs with the labor provider and its fee for the hosted services through to its customers in the form of a fixed fee for each order placed via the Company’s online engagement solutions. For these Pay for Performance (“PFP”) arrangements, the Company recognizes revenue net of the labor provider’s fee in accordance with ASC 605-45, “Principal Agent Considerations,” due primarily to the fact that the call center labor vendor is the primary obligor with respect to the labor services provided. Additionally, the Company performs as an agent without risk of loss for collection and does not bear inventory risk with respect to the outsourced labor services. Finally, the Company does not provide any part of the labor services, has no latitude in establishing prices for the labor services and generally does not have discretion in selecting the vendor.

The majority of the Company’s larger customers also pay a professional services fee related to implementation. The Company defers these implementation fees and associated direct costs and recognizes them ratably over the expected term of the customer relationship upon commencement of the hosting services. The Company may also charge professional service fees related to additional training, business consulting and analysis in support of the LivePerson services.

The Company also sells certain of the LivePerson services directly via Internet download. These services are marketed as LivePerson Pro and LivePerson Contact Center for small and mid-sized businesses (“SMBs”), and are paid for almost exclusively by credit card. Credit card payments accelerate cash flow and reduce the Company’s collection risk, subject to the merchant bank’s right to hold back cash pending settlement of the transactions. Sales of LivePerson Pro and LivePerson Contact Center may occur with or without the assistance of an online sales representative, rather than through face-to-face or telephone contact that is typically required for traditional direct sales.

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(1) Summary of Operations and Significant Accounting Policies – (continued)

The Company recognizes monthly service revenue based upon the fee charged for the LivePerson services, provided that there is persuasive evidence of an arrangement, no significant Company obligations remain, collection of the resulting receivable is probable and the amount of fees to be paid is fixed or determinable. The Company’s service agreements typically have twelve month terms and, in some cases, are terminable or may terminate upon 30 to 90 days’ notice without penalty. When professional service fees add value to the customer on a standalone basis, the Company recognizes professional service fees upon completion and customer acceptance in accordance with FASB Accounting Standards Update 2009-13. This guidance establishes a selling price hierarchy for determining the selling price of a deliverable, which is based on: (a) vendor-specific objective evidence; (b) third-party evidence; or (c) estimates. If a professional services arrangement does not qualify for separate accounting, the Company recognizes the fees, and the related labor costs, ratably over a period of 48 months, representing the Company’s current estimate of the term of the customer relationship.

For revenue generated from online transactions between Experts and Users, the Company recognizes revenue net of the Expert fees in accordance with ASC 605-45, “Principal Agent Considerations,” due primarily to the fact that the Expert is the primary obligor. Additionally, the Company performs as an agent without any risk of loss for collection, and is not involved in selecting the Expert or establishing the Expert’s fee. The Company collects a fee from the User and retains a portion of the fee, and then remits the balance to the Expert. Revenue from these transactions is recognized when there is persuasive evidence of an arrangement, no significant Company obligations remain, collection of the resulting receivable is probable and the amount of fees to be paid is fixed and determinable.

(i) Income Taxes

(j) Advertising Costs

The Company expenses the cost of advertising and promoting its services as incurred. Such costs totaled approximately $6,374, $6,310, and $6,132 for the years ended December 31, 2012, 2011 and 2010, respectively.

(k) Financial Instruments and Concentration of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable which approximate fair value at December 31, 2012 because of the short-term nature of these instruments. The Company invests its cash and cash equivalents with financial institutions that it believes are of high quality, and the Company performs periodic evaluations of these instruments and the relative credit standings of the institutions with which it invests. At certain times, the Company’s cash balances with any one financial institution may exceed Federal Deposit Insurance Corporation insurance limits. The Company believes it mitigates its risk by depositing its cash balances with high credit, quality financial institutions.

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(1) Summary of Operations and Significant Accounting Policies – (continued)

The Company’s customers are located primarily in the United States. The Company performs ongoing credit evaluations of its customers’ financial condition (except for customers who purchase the LivePerson services by credit card via Internet download) and has established an allowance for doubtful accounts based upon factors surrounding the credit risk of customers, historical trends and other information. Concentration of credit risk is limited due to the Company’s large number of customers. No single customer accounted for or exceeded 10% of revenue in 2012, 2011 or 2010. One customer accounted for approximately 15% and 18% of accounts receivable at December 31, 2012 and 2011, respectively.

(l) Stock-based Compensation

The Company follows FASB ASC 718-10, “Stock Compensation,” which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. ASC 718-10 requires measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized.

The following table summarizes stock-based compensation expense related to employee stock options under ASC 718-10 included in Company’s Statement of Income for the years ended December 31, 2012, 2011 and 2010:

	December 31,
	2012		2011		2010
Cost of revenue	$	1,579	$	1,023	$	866
Product development expense		2,964		1,703		1,329
Sales and marketing expense		2,878		1,668		1,371
General and administrative expense		3,294		2,377		1,576
Total stock based compensation included in operating expenses	$	10,715	$	6,771	$	5,142

The per share weighted average fair value of stock options granted during the years ended December 31, 2012, 2011 and 2010 was $8.20, $6.47 and $3.89, respectively. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions for the years ended December 31, 2012, 2011 and 2010:


	December 31,
	2012		2011		2010
Dividend yield		0.0%		0.0%		0.0%
Risk-free interest rate		0.6% – 0.9%		0.9% – 3.7%		2.6% – 3.8%
Expected life (in years)		5.0		5.0		5.0
Historical volatility		59.3% – 60.8%		60.1% – 61.5%		60.3% – 61.9%

A description of the methods used in the significant assumptions used to estimate the fair value of stock-based-based compensation awards follows:

Dividend yield – The Company uses 0% as it has never issued dividends and does not anticipate issuing dividends in the near term.

Risk-free interest rate – The Company uses the market yield on U.S. Treasury securities at five years with constant maturity, representing the current expected life of stock options in years.

Expected life – The Company uses historical data to estimate the expected life of a stock option.

Historical volatility – The Company uses a trailing five year from grant date to determine volatility.

(m) Basic and Diluted Net Income per Share

The Company calculates earnings per share (“EPS”) in accordance with the provisions of ASC 260-10 and the guidance of SEC Staff Accounting Bulletin (“SAB”) No. 98. Under ASC 260-10, basic EPS excludes dilution for common stock equivalents and is computed by dividing net income or loss attributable to common shareholders by the weighted average number of common shares outstanding for the period. All options, warrants or other potentially dilutive instruments issued for nominal consideration are required to be included in the calculation of basic and diluted net income attributable to common stockholders. Diluted EPS is

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(1) Summary of Operations and Significant Accounting Policies – (continued)

calculated using the treasury stock method and reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and resulted in the issuance of common stock.

Diluted net income per common share for the year ended December 31, 2012 includes the effect of options to purchase 4,865,957 shares of common stock with a weighted average exercise price of $6.80. Diluted net income per common share for the year ended December 31, 2012 does not include the effect of options to purchase 4,975,525 shares of common stock as the effect of their inclusion is anti-dilutive. Diluted net income per common share for the year ended December 31, 2011 includes the effect of options to purchase 5,235,305 shares of common stock with a weighted average exercise price of $4.94. Diluted net income per common share for the year ended December 31, 2011 does not include the effect of options to purchase 3,608,110 shares of common stock as the effect of their inclusion is anti-dilutive. Diluted net income per common share for the year ended December 31, 2010 includes the effect of options to purchase 5,294,867 shares of common stock with a weighted average exercise price of $3.61. Diluted net income per common share for the year ended December 31, 2010 does not include the effect of options to purchase 3,524,395 shares of common stock as the effect of their inclusion is anti-dilutive. A reconciliation of shares used in calculating basic and diluted earnings per share follows:

	Year Ended December 31,
	2012		2011		2010
Basic		55,292,597		52,876,999		50,721,880
Effect of assumed exercised options		1,838,444		2,131,743		2,185,661
Diluted		57,131,041		55,008,742		52,907,541

(n) Segment Reporting

The Company accounts for its segment information in accordance with the provisions of ASC 280-10, “Segment Reporting.” ASC 280-10 establishes annual and interim reporting standards for operating segments of a company. ASC 280-10 requires disclosures of selected segment-related financial information about products, major customers, and geographic areas based on the Company’s internal accounting methods. The Company is organized into two operating segments for purposes of making operating decisions and assessing performance. The Business segment facilitates real-time online interactions — chat, voice and content delivery across multiple channels and screens for global corporations of all sizes. The Consumer segment facilitates online transactions between Experts and Users and sells its services to consumers. Both segments currently generate their revenue primarily in the U.S. The chief operating decision-makers evaluate performance, make operating decisions, and allocate resources based on the operating income of each segment. The reporting segments follow the same accounting polices used in the preparation of the Company’s consolidated financial statements which are described in the summary of significant accounting policies. The Company allocates cost of revenue, sales and marketing and amortization of purchased intangibles to the segments, but it does not allocate product development expenses, general and administrative expenses and income tax expense because management does not use this information to measure performance of the operating segments. There are currently no intersegment sales.

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(1) Summary of Operations and Significant Accounting Policies – (continued)

Summarized financial information by segment for the year ended December 31, 2012, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows:


	Consolidated		Corporate			Business		Consumer
Revenue:
Hosted services – Business	$	132,310	$	—		$	132,310	$	—
Hosted services – Consumer		15,111		—			—		15,111
Professional services		9,988		—			9,988		—
Total revenue		157,409		—			142,298		15,111
Cost of revenue		35,579		—			33,450		2,129
Sales and marketing		49,614		—			44,087		5,527
Amortization of intangibles		218		—			218		—
Unallocated corporate expenses		61,657		61,657			—		—
Operating income (loss)	$	10,341	$	(61,657	)	$	64,543	$	7,455

Summarized financial information by segment for the year ended December 31, 2011, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows:

	Consolidated		Corporate			Business		Consumer
Revenue:
Hosted services – Business	$	111,934	$	—		$	111,934	$	—
Hosted services – Consumer		14,522		—			—		14,522
Professional services		6,633		—			6,633		—
Total revenue		133,089		—			118,567		14,522
Cost of revenue		33,195		—			29,793		3,402
Sales and marketing		38,884		—			32,690		6,194
Amortization of intangibles		109		—			109		—
Unallocated corporate expenses		41,266		41,266			—		—
Operating income (loss)	$	19,635	$	(41,266	)	$	55,975	$	4,926

Summarized financial information by segment for the year ended December 31, 2010, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows:

	Consolidated		Corporate			Business		Consumer
Revenue:
Hosted services – Business	$	91,262	$	—		$	91,262	$	—
Hosted services – Consumer		14,195		—			—		14,195
Professional services		4,405		—			4,405		—
Total revenue		109,862		—			95,667		14,195
Cost of revenue		29,640		—			25,863		3,777
Sales and marketing		32,835		—			26,184		6,651
Amortization of intangibles		259		—			43		216
Unallocated corporate expenses		32,788		32,788			—		—
Operating income (loss)	$	14,340	$	(32,788	)	$	43,577	$	3,551

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(1) Summary of Operations and Significant Accounting Policies – (continued)

Revenues attributable to domestic and foreign operations follows:


	December 31,
	2012		2011		2010
United States	$	118,208	$	101,519	$	84,725
United Kingdom		22,125		18,250		14,110
Other Countries		17,076		13,320		11,027
Total revenue	$	157,409	$	133,089	$	109,862

Long-lived assets by geographic region follows:


	December 31,
	2012		2011
United States	$	35,711	$	28,626
Israel		23,750		13,167
Australia		10,361		—
United Kingdom		2,600		2,249
Total long-lived assets	$	72,422	$	44,042

(o) Comprehensive Income (Loss)

ASC 220-10, “Reporting Comprehensive Income,” requires the Company to report in its consolidated financial statements, in addition to its net income, comprehensive income (loss), which includes all changes in equity during a period from non-owner sources including, as applicable, foreign currency items, minimum pension liability adjustments and unrealized gains and losses on certain investments in debt and equity securities. The Company’s comprehensive loss for all periods presented is related to the effect of foreign translation losses.

(p) Computer Software

The Company follows the provisions of ASC 350-40, “Accounting for the Costs of Computer Software Developed or Obtained for Internal Use.” ASC 350-40 provides guidance for determining whether computer software is internal-use software and on accounting for the proceeds of computer software originally developed or obtained for internal use and then subsequently sold to the public. It also provides guidance on capitalization of the costs incurred for computer software developed or obtained for internal use. The Company capitalized $2,437 as of December 31, 2012 and $1,086 as of December 31, 2011. Software costs are included in “Property and equipment, net” on the Company’s balance sheet and are depreciated using the straight-line method over their estimated useful life, generally three years.

(q) Goodwill and Intangible Assets

In accordance with ASC 350, Goodwill and Other Intangible Assets, goodwill and indefinite-lived intangible assets are not amortized, but reviewed for impairment upon the occurrence of events or changes in circumstances that would reduce the fair value below its carrying amount. Goodwill is required to be tested for impairment at least annually. In September 2011, the FASB issued ASU No. 2011-08, “Intangibles — Goodwill and Other (Topic 350).” ASU 2011-08 permits an entity to first assess qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in Topic 350. The more-likely-than-not threshold is defined as having a likelihood of more than 50%. If it is determined that the fair value of a reporting unit is more likely than not to be less than its carrying value (including unrecognized intangible assets) then it is necessary to perform the second step of the goodwill impairment test. The second step of the goodwill impairment test is judgmental in nature and often involves the use of significant estimates and assumptions. Similarly, estimates and assumptions are used in determining the fair value of other intangible assets. These estimates and assumptions

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(1) Summary of Operations and Significant Accounting Policies – (continued)

could have a significant impact on whether or not an impairment charge is recognized and also the magnitude of any such charge. The Company performs internal valuation analyses and considers other market information that is publicly available. Estimates of fair value are primarily determined using discounted cash flows and market comparisons. These approaches use significant estimates and assumptions including projected future cash flows (including timing), discount rates reflecting the risk inherent in future cash flows, perpetual growth rates, determination of appropriate market comparables and the determination of whether a premium or discount should be applied to comparables. ASC 350-10 also requires that intangible assets with estimable useful lives be amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with ASC 360-10-35, “Accounting for Impairment or Disposal of Long-Lived Assets.”

In the third quarter of 2012, the Company determined that it is not more-likely that the fair value of the reporting units is less than their carrying amount. Accordingly, the Company did not perform the two-step goodwill impairment test.

(r) Deferred Rent

The Company records rent expense on a straight-line basis over the term of the related lease. The difference between the rent expense recognized for financial reporting purposes and the actual payments made in accordance with the lease agreement is recognized as deferred rent liability on the Company’s balance sheet.

(s) Foreign Currency Translation

Assets and liabilities in foreign functional currencies are translated at the exchange rate as of the balance sheet date. Translation adjustments are recorded as a separate component of stockholders’ equity. Revenue, costs and expenses denominated in foreign functional currencies are translated at the weighted average exchange rate for the period. The translation adjustment of $19 for the year ended December 31, 2012, is related to the Company’s wholly-owned United Kingdom and Australian subsidiaries. The translation adjustment of $35 and $127 for the years ended December 31, 2011 and 2010, respectively, is related to the Company’s wholly-owned United Kingdom subsidiary. The functional currency of the Company’s wholly-owned Israeli subsidiaries is the U.S. dollar.

(t) Recently Issued Accounting Standards

In December 2011, the FASB issued ASU No. 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.” This ASU is intended to provide enhanced disclosures that will enable users of its financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position. This includes the effect or potential effect of rights of setoff associated with an entity’s recognized assets and recognized liabilities within the scope of this update. The amendments require enhanced disclosures by requiring improved information about financial instruments and derivative instruments that are either (1) offset in accordance with either Section 210-20-45 or Section 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with either Section 210-20-45 or Section 815-10-45. An entity is required to apply this amendment for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. ASU No. 2011-11 relates specifically to disclosures, it will not have an impact on the Company’s consolidated financial statements.

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(1) Summary of Operations and Significant Accounting Policies – (continued)

(u) Fair Value of Financial Instruments

The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties. Cash and cash equivalents, accounts receivable, security deposits and accounts payable carrying amounts approximate fair value because of the short maturity of these instruments.

(v) Goodwill and Intangible Assets

The changes in the carrying amount of goodwill for the year ended December 31, 2012 are as follows:

	Total		Business		Consumer
Balance as of December 31, 2011	$	24,090	$	16,066	$	8,024
Adjustments to goodwill:
Engage acquisition		6,073		6,073		—

LookIO acquisition		2,405		2,405		—
Contingent earnout payments		77		77		—
Balance as of December 31, 2012	$	32,645	$	24,621	$	8,024

The changes in the carrying amount of goodwill for the year ended December 31, 2011 are as follows:

	Total		Business		Consumer
Balance as of December 31, 2010	$	24,015	$	15,991	$	8,024
Adjustments to goodwill:
Contingent earnout payments		75		75		—
Balance as of December 31, 2011	$	24,090	$	16,066	$	8,024

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(1) Summary of Operations and Significant Accounting Policies – (continued)

Intangible assets are summarized as follows (see Note 2):

Acquired Intangible Assets


	As of December 31, 2012
	Gross Carrying Amount		Weighted Average Amortization Period		Accumulated Amortization
Amortizing intangible assets:
Technology	$	18,533		3.8 years	$	5,904
Customer relationships		5,061		3.5 years		2,485
Trade names		725		2.7 years		644
Non-compete agreements		486		1.2 years		421
Patents		475		11.0 years		145
Other		235		3.0 years		235
Total	$	25,515			$	9,834

	As of December 31, 2011
	Gross Carrying Amount		Weighted Average Amortization Period		Accumulated Amortization
Amortizing intangible assets:
Technology	$	6,199		3.8 years	$	5,474
Customer relationships		2,400		3.0 years		2,400
Trade names		630		3.0 years		630
Non-compete agreements		410		1.2 years		410
Patents		475		11.0 years		105
Other		235		3.0 years		235
Total	$	10,349			$	9,254

Amortization expense is calculated on a straight-line basis over the estimated useful life of the asset. Aggregate amortization expense for intangible assets was $580, $1,029 and $1,486 for the years ended December 31, 2012, 2011 and 2010, respectively. For the years ended December 31, 2012, 2011 and 2010 a portion of this amortization is included in cost of revenue. Estimated amortization expense for the next five years is: $4,339 in 2013, $4,117 in 2014, $3,755 in 2015, $3,314 in 2016, $43 in 2017 and $113 thereafter.

Acquisitions

12 Months Ended

Dec. 31, 2012

Acquisitions [Abstract]

Acquisitions

(2) Acquisitions

Proficient Systems

On July 18, 2006, the Company acquired Proficient Systems, Inc. (“Proficient”), a provider of hosted proactive chat solutions that help companies generate revenue on their web sites. This transaction was accounted for under the purchase method of accounting and, accordingly, the operating results of Proficient were included in the Company’s consolidated results of operations from the date of acquisition. The acquisition added several U.K. based financial services customers and provided an innovative product marketing team. During the twelve months ended December 31, 2012, 2011 and 2010, the Company incurred additional costs related to the earn-out litigation in the amount of $77, $75, $95, respectively, resulting in an increase in goodwill.

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(2) Acquisitions – (continued)

Based on the achievement of certain revenue targets as of March 31, 2007, LivePerson was contingently required to issue up to an additional 2,050,000 shares of common stock. Based on these targets, the Company issued 1,127,985 shares of common stock valued at $8,894, based on the quoted market price of the Company’s common stock on the date the contingency was resolved, and made a cash payment of $20 related to this contingency. At March 31, 2007, the value of these shares has been allocated to goodwill with a corresponding increase in equity. In accordance with the purchase agreement, the earn-out consideration was subject to review by Proficient’s Shareholders’ Representative. On July 31, 2007, the Company was served with a complaint filed in the United States District Court for the Southern District of New York by the Shareholders’ Representative of Proficient (“Plaintiff”). The complaint filed by the Shareholders’ Representative sought certain documentation relating to calculation of the earn-out consideration, and demanded payment of damages on the grounds that substantially all of the remaining contingently issuable earn-out shares should have been paid. The case proceeded to trial, which ended on November 4, 2010. On June 27, 2012, the District Court issued its decision, ruling substantially in favor of the Company with the exception of certain immaterial claims by Plaintiff that were upheld and for which the Court ordered the payment of a nominal amount in damages by the Company to the former shareholders of Proficient. This payment will not have a material impact on the Company’s ongoing operations. This amount is included in Goodwill on the Company’s December 31, 2012 balance sheet.

NuConomy Ltd.

On April 13, 2010, the Company acquired all of the outstanding shares of NuConomy Ltd. (“NuConomy”), an Israeli-based development-stage company whose web analytics and optimization platform is intended to help companies better assess and understand website and social marketing performance, in exchange for aggregate cash consideration of $800. This transaction was accounted for as an asset purchase. The net asset was allocated to “Intangibles, net.”

Amadesa Ltd.

On May 31, 2012, the Company acquired technology assets from Amadesa, Ltd., an Israeli-based start-up, for aggregate cash consideration of approximately $10,301. The acquisition provides the Company with sophisticated, machine-learning predictive modeling that it expects to leverage across multiple engagement channels, enhancing its real-time intelligent engagement platform. The asset was allocated to “Intangibles, net” on the Company’s December 31, 2012 balance sheet and will be amortized over its expected period of benefit. The acquisition did not have a material impact on the Company’s reported operating results. Total acquisition costs incurred in the year ended December 31, 2012, were approximately $497 and are included in “Intangibles, net” on the Company’s December 31, 2012 balance sheet.

LookIO, Inc.

On June 13, 2012, the Company acquired LookIO, Inc., a start-up that provides mobile engagement solutions. The transaction was accounted for under the purchase method of accounting and, accordingly, the operating results of LookIO, Inc. were included in the Company’s consolidated results of operations from the date of acquisition. The acquisition did not have a material impact on the Company’s reported operating results.

The purchase price was approximately $2,884, which included the issuance of 109,517 shares of the Company’s common stock valued at approximately $1,984, based on the quoted market price of the Company’s common stock on the day of closing, and a cash payment of $900. Total acquisition costs incurred in the year ended December 31, 2012 were approximately $157 and are included in general and administrative expenses in the Company’s Consolidated Statements of Income for the same period. The acquisition adds plug-and-play mobile engagement capabilities to LivePerson’s platform allowing its customers to connect with consumers on mobile devices. All 109,517 shares are included in the weighted average shares outstanding used in basic and diluted net income per share as of the acquisition date. The purchase price was allocated based on management’s estimate of fair values, taking into account all relevant information available. A substantial amount of the purchase price was allocated to intangibles (technology) and the excess was allocated to goodwill. The goodwill is not deductible for income tax purposes. The intangible asset is being amortized over its expected period of benefit. In addition to the purchase price, certain founders can earn an additional 30,422 shares of LivePerson common stock by achieving an employment milestone by providing continued services through a specified date. The Company valued these shares at approximately $551, based on the quoted market price of the Company’s common stock on the day of closing. In accordance with ASC 805-10, the Company is accruing this contingent compensation ratably over the requisite employment period.

Management’s allocation of the purchase price in connection with the LookIO acquisition is as follows:

Intangible assets (technology)	$	767

Goodwill		2,405
		3,172
Deferred tax liability		(288	)
Total purchase price consideration	$	2,884

Engage Pty Ltd.

On November 9, 2012, the Company acquired all outstanding shares of Engage Pty Ltd. (“Engage”), an Australian provider of cloud-based customer contact solutions. The transaction was accounted for under the purchase method of accounting and, accordingly, the operating results of Engage were included in the Company’s consolidated results of operations from the date of acquisition. The acquisition did not have a material impact on the Company’s reported operating results.

The purchase price was approximately $10,512. The total acquisition costs incurred in the year ended December 31, 2012 were approximately $494 and are included in general and administrative expenses in the Company’s Consolidated Statements of Income for the same period. The acquisition enhances the Company’s ability to offer intelligent engagement solutions to businesses in the Asia Pacific region. Of the total purchase price, $839 was allocated to the net book values of the acquired assets and assumed liabilities. The historical carrying amounts of such assets and liabilities approximated their fair values. All receivables acquired are expected to be collectible. The purchase price in excess of the fair value of the net book values of the assets acquired and liabilities assumed was allocated to intangible assets based on management’s best estimate of fair values, taking into account all relevant information available at the time of acquisition, and the excess was allocated to goodwill. The goodwill is not deductible for tax purposes. The intangible assets are being amortized over their expected period of benefit. The purchase price includes approximately $1,660 of potential earn-out consideration for the shareholders if certain revenue targets are achieved. The earn-out is payable in shares of LivePerson common stock. The Company recorded the contingent earn-out as part of the purchase price. In accordance with ASC 480, the Company has classified this amount as a liability and the amount is included in the December 31, 2012 balance sheet, due to the variable number of shares that will be issued if and when the targets are achieved. The Company will assess the earn-out calculation in future periods and any future adjustments will affect operating income.

Management’s preliminary allocation of the purchase price in connection with the Engage acquisition is as follows:

Cash	$	386


Accounts receivable		3,454
Other currents assets		57
Property and equipment		432
Other assets		104
Intangible assets		3,600
Goodwill		6,073
		14,106
Liabilities assumed		(2,632	)
Deferred tax liability, net		(962	)
Total purchase price consideration	$	10,512

The components of the intangible assets listed in the above table are as follows:

	Weighted Average Useful Life (months)		Amount
Technology		36	$	768
Trade name		12		95
Customer relationships		48		2,661
Non-compete agreements		12		76
			$	3,600

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1486-128463

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6927-128479

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-Name Accounting Standards Codification
-Topic 805
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472

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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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-Publisher FASB
-Name Accounting Standards Codification
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1383-128463

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph F4
-Subparagraph e
-Appendix F

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Balance Sheet Components

12 Months Ended

Dec. 31, 2012

Balance Sheet Components [Abstract]

BALANCE SHEET COMPONENTS

(3) Balance Sheet Components

Property and Equipment

Property and equipment is summarized as follows:

	December 31,
	2012		2011
Computer equipment and software	$	38,649	$	30,182
Furniture, equipment and building improvements		6,834		4,356
		45,483		34,538
Less accumulated depreciation		27,988		20,659
Total	$	17,495	$	13,879

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(3) Balance Sheet Components – (continued)

Accrued Expenses

Accrued expenses consist of the following:

	December 31,
	2012		2011
Payroll and other employee related costs	$	9,199	$	6,435
Professional services, consulting and other vendor fees		5,698		4,686
Sales commissions		490		446
Contingent earnout (Note 2)		1,660		—
Other		864		452
Total	$	17,911	$	12,019

Capitalization	12 Months Ended
Capitalization	Dec. 31, 2012
Capitalization [Abstract]
Capitalization	(4) Capitalization On December 10, 2012, the Company’s Board of Directors approved a stock repurchase program through June 30, 2014. Under the stock repurchase program, the Company is authorized to repurchase shares of its common stock, in the open market or privately negotiated transactions, at times and prices considered appropriate by the Board of Directors depending upon prevailing market conditions and other corporate considerations, up to an aggregate purchase price of $20,000. No shares were repurchased under this program during 2012.

Stock Options And Employee Stock Purchase Plan

12 Months Ended

Dec. 31, 2012

Stock Options And Employee Stock Purchase Plan [Abstract]

Stock Options And Employee Stock Purchase Plan

(5) Stock Options and Employee Stock Purchase Plan

During 1998, the Company established the Stock Option and Restricted Stock Purchase Plan (the “1998 Plan”). Under the 1998 Plan, the Board of Directors could issue incentive stock options or nonqualified stock options to purchase up to 5,850,000 shares of common stock. The 2000 Stock Incentive Plan (the “2000 Plan”) succeeded the 1998 Plan. Under the 2000 Plan, the options which had been outstanding under the 1998 Plan were incorporated in the 2000 Plan increasing the number of shares available for issuance under the plan by approximately 4,150,000, thereby reserving for issuance 10,000,000 shares of common stock in the aggregate.

The Company established the 2009 Stock Incentive Plan (as amended and restated, the “2009 Plan”) as a successor to the 2000 Plan. Under the 2009 Plan, the options which had been outstanding under the 2000 Plan were incorporated into the 2009 Plan and the Company increased the number of shares available for issuance under the plan by 6,000,000. The Company amended the 2009 stock incentive plan (the “Amended 2009 Plan'') effective June 7, 2012. The Amended 2009 Plan increased the number of shares authorized for issuance under the plan by an additional 4,250,000, thereby reserving for issuance 23,817,744 shares of common stock in the aggregate. Options to acquire common stock granted thereunder have ten-year terms. As of December 31, 2012, approximately 15,425,000 shares of common stock were reserved for issuance under the 2009 Plan (taking into account all option exercises through December 31, 2012). As of December 31, 2012, there was approximately $39,874 of total unrecognized compensation cost related to nonvested share-based compensation arrangements. That cost is expected to be recognized over a weighted average period of approximately 2.1 years.

In March 2000, the Company adopted the 2000 Employee Stock Purchase Plan with 450,000 shares of common stock initially reserved for issuance (the “2000 ESPP”). The 2000 ESPP expired on its terms on the last day of April 2010.

In June 2010, our stockholders approved the 2010 Employee Stock Purchase Plan with 1,000,000 shares of common stock initially reserved for issuance. As of December 31, 2012, approximately 849,000 shares of common stock were reserved for issuance under the Employee Stock Purchase Plan (taking into account all share purchases through December 31, 2012).

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(5) Stock Options and Employee Stock Purchase Plan – (continued)

A summary of the Company’s stock option activity and weighted average exercise prices follows:

	Options			Weighted Average Exercise Price
Options outstanding at December 31, 2009		8,711,808		$	3.82
Options granted		3,809,380			7.13
Options exercised		(2,843,547	)		4.10
Options cancelled		(860,881	)		5.09
Options outstanding at December 31, 2010		8,816,760			5.04
Options granted		3,642,600			12.24
Options exercised		(2,278,451	)		4.28
Options cancelled		(1,337,496	)		7.03
Options outstanding at December 31, 2011		8,843,413			7.91
Options granted		3,463,500			16.20
Options exercised		(1,634,658	)		5.10
Options cancelled		(830,776	)		10.78
Options outstanding at December 31, 2012		9,841,479		$	11.06
Options exercisable at December 31, 2010		3,097,748		$	3.93
Options exercisable at December 31, 2011		2,805,399		$	4.63
Options exercisable at December 31, 2012		3,220,228		$	6.61

The total value of stock options exercised during the years ended December 31, 2012, 2011 and 2010 was approximately $16,252, $17,174 and $11,050, respectively. The total intrinsic value of options exercisable at December 31, 2012, 2011 and 2010 was approximately $20,815, $21,890 and $22,491, respectively. The total intrinsic value of nonvested options at December 31, 2012, 2011 and 2010 was approximately $10,105, $19,839 and $32,420, respectively. The total intrinsic value of all outstanding options at December 31, 2012, 2011 and 2010 was approximately $30,920, $41,729 and $54,911, respectively.

A summary of the status of the Company’s nonvested options as of December 31, 2010, and changes during the years ended December 31, 2011 and 2012 is as follows:

	Shares			Weighted Average Grant-Date Fair Value
Nonvested Shares at January 1, 2011		5,719,012		$	3.13
Granted		3,642,600			6.47
Vested		(1,967,639	)		3.00
Cancelled		(1,355,959	)		3.83
Nonvested Shares at December 31, 2011		6,038,014		$	5.04

Nonvested Shares at January 1, 2012		6,038,014		$	5.04
Granted		3,463,500			8.20
Vested		(2,060,707	)		4.46
Cancelled		(819,556	)		5.69
Nonvested Shares at December 31, 2012		6,621,251		$	6.84

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Valuation And Qualifying Accounts

12 Months Ended

Dec. 31, 2012

Valuation and Qualifying Accounts [Abstract]

Valuation And Qualifying Accounts

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(6) Valuation and Qualifying Accounts


	Balance at Beginning of Period		Additions Charged to Costs and Expenses		Deductions / Write-Offs			Balance at End of Period
For the year ended December 31, 2012 Allowance for doubtful accounts	$	688	$	20	$	—		$	708
For the year ended December 31, 2011 Allowance for doubtful accounts	$	561	$	290	$	(163	)	$	688
For the year ended December 31, 2010 Allowance for doubtful accounts	$	395	$	166	$	—		$	561

Income Taxes

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Income Taxes

(7) Income Taxes

Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences are expected to become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. The Company includes interest accrued on the underpayment of income taxes in interest expense and penalties, if any, related to unrecognized tax benefits in general and administrative expenses.

Under Section 382 of the Internal Revenue Code of 1986, as amended, the Company’s use of its federal net operating loss (“NOL”) carryforwards may be limited if the Company experiences an ownership change, as defined in Section 382. Such an annual limitation could result in the expiration of the net operating loss carryforwards before utilization. As of December 31, 2012, the Company had approximately $6,655 of federal NOL carryforwards available to offset future taxable income. Included in this amount is $5,616 of federal NOL carryovers from the Company’s acquisition of Proficient. These carryforwards expire in various years through 2027.

The domestic and foreign components of income before provision for income taxes consist of the following:


	Year Ended December 31,
	2012		2011		2010
United States	$	6,252	$	16,495	$	12,478
Israel		2,819		1,837		1,572
United Kingdom		1,449		818		283
Australia		197		—		—
	$	10,717	$	19,150	$	14,333

No additional provision has been made for U.S. income taxes on the undistributed earnings of its Israeli subsidiary, LivePerson Ltd (formerly HumanClick Ltd.), as such earnings have been taxed in the U.S. and accumulated earnings of the Company’s other foreign subsidiaries are immaterial through December 31, 2012.

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(7) Income Taxes – (continued)

The provision for income taxes consists of the following:


	Year Ended December 31,
	2012		2011			2010
Current income taxes:
U.S. Federal	$	5,750	$	5,839		$	3,554
State and local		812		600			473
Foreign		671		444			215
Total current income taxes		7,233		6,883			4,242
Deferred income taxes:
U.S. Federal		(2,867)		232			694
State and local		265		(38	)		(60)
Foreign		(269)		35			198
Total deferred income taxes		(2,871)		229			832
Total income taxes	$	4,362	$	7,112		$	5,074

The difference between the total income taxes computed at the federal statutory rate and the benefit from income taxes consists of the following:


	Year Ended December 31,
	2012			2011			2010
Federal Statutory Rate		35.00	%		34.48	%		34.30	%
State taxes, net of federal benefit		2.78	%		2.56	%		2.27	%
Non-deductible expenses – ISO		4.82	%		0.47	%		(0.88)	%
Non-deductible expenses – Other		1.15	%		0.51	%		0.43	%
Foreign taxes		(2.92	)%		(0.13	)%		(0.08	)%
Other		(0.12	)%		(0.76	)%		(0.64)	%
Total provision		40.71	%		37.13	%		35.40	%

The effects of temporary differences and tax loss carryforwards that give rise to significant portions of federal deferred tax assets and deferred tax liabilities at December 31, 2012 and 2011 are presented below:


	2012			2011
Deferred tax assets:
Net operating loss carryforwards	$	2,356		$	2,504
Accounts payable and accrued expenses		2,132			424
Non-cash compensation		4,167			2,582
Goodwill and intangibles amortization		1,123			1,462
Allowance for doubtful accounts		267			260
Net deferred tax assets		10,045			7,232
Deferred tax liabilities:
Plant and equipment		(2,096	)		(2,061	)
Intangibles related to the Engage acquisition		(912)			—
Intangibles related to the LookIO acquisition		(238)			—
Total deferred tax liabilities		(3,246	)		(2,061	)
Net deferred assets	$	6,799		$	5,171

ASC Topic 740 clarifies the accounting for uncertainty in income taxes recognized in the financial statements in accordance with other provisions contained within this guidance. This topic prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by the taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate audit settlement.

The tax years subject to examination by major tax jurisdictions include the years 2008 and forward for U.S states and New York City, the years 2009 and forward for U.S. Federal and the years 2009 and forward for certain foreign jurisdictions.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Commitments And Contingencies

12 Months Ended

Dec. 31, 2012

Commitments And Contingencies [Abstract]

Commitments and Contingencies

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(8) Commitments and Contingencies

The Company leases facilities and certain equipment under agreements accounted for as operating leases. These leases generally require the Company to pay all executory costs such as maintenance and insurance. Rental expense for operating leases for the years ended December 31, 2012, 2011 and 2010 was approximately $7,365, $6,615 and $6,428, respectively.

Future minimum lease payments under non-cancelable operating leases (with an initial or remaining lease terms in excess of one year) are as follows:


Year ending December 31,	Operating Leases
2013	$	6,689
2014		4,696
2015		3,901
2016		1,189
2017		1,442
Thereafter		3,227
Total minimum lease payments	$	21,144

Capital Expenditures

Through December 31, 2012, the Company has spent approximately $26,000 related to the build-out and expansion of its co-location facilities in the U.S. and Europe to host the LivePerson and Consumer services. This amount is included in “Assets — Property and equipment, net” on the Company’s December 31, 2012 balance sheet. Though the Company expects to incur additional costs in 2013 related to the continued expansion our co-location facilities and office build-outs to support its growth, its total capital expenditures are not currently expected to exceed $12,000 in 2013. The Company anticipates that its current cash and cash equivalents and cash from operations will be sufficient to fund its capital requirements.

Employee Benefit Plans

The Company has a 401(k) defined contribution plan covering all eligible employees. The Company provides for employer matching contributions equal to 50% of employee contributions, up to the lesser of 5% of eligible compensation or $6. Matching contributions are deposited in to the employees 401(k) account and are subject to 5 year graded vesting. Salaries and related expenses include $682, $545 and $436 of employer matching contributions for the years ended December 31, 2012, 2011 and 2010, respectively.

Indemnifications

The Company enters into service and license agreements in its ordinary course of business. Pursuant to some of these agreements, the Company agrees to indemnify certain customers from and against certain types of claims and losses suffered or incurred by them as a result of using the Company’s products.

The Company also has agreements whereby its executive officers and directors are indemnified for certain events or occurrences while the officer or director is, or was serving, at the Company’s request in such capacity. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has a directors and officers insurance policy that reduces its exposure and enables the Company to recover a portion of any future amounts paid. As a result of its insurance policy coverage, the Company believes the estimated fair value of these indemnification agreements is minimal. Currently, the Company has no liabilities recorded for these agreements as of December 31, 2012.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Legal Matters	12 Months Ended
Legal Matters	Dec. 31, 2012
Legal Matters [Abstract]
Legal Matters	LIVEPERSON, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (In Thousands, Except Share and per Share Data) (9) Legal Matters On February 7, 2012, the Company filed suit against Pragmatus Telecom LLC in the District of Delaware, seeking a declaratory judgment that the Company’s products do not infringe three patents owned by Pragmatus which Pragmatus had previously asserted were infringed by certain of the Company’s customers. On March 13, 2012, the Company amended the complaint to add a request for a declaratory judgment that those three patents are invalid. On April 6, 2012, Pragmatus answered the Amended Complaint, and asserted counterclaims against the Company asserting infringement of the same three patents. Pursuant to a June 1, 2012 Scheduling Order entered by the Court, trial in this matter will begin on or after September 8, 2014. The Company currently does not expect that the outcome of this matter will have a material adverse effect on its financial condition, results of operations or cash flows. However, litigation is inherently unpredictable; therefore, judgments could be rendered or settlements entered, that could adversely affect the Company’s operating results or cash flows in a particular period. Though it is reasonably possible that the Company will incur a liability associated with this litigation, the amount, if any such liability, is not reasonably estimable at this time. On September 14, 2012, Community United IP, LLC filed a patent infringement case against the Company, along with co-defendants 1-800-Flowers.com, Discover Card Services, Inc., EarthLink, Inc., QVC, Inc., and Cellco Partnership d/b/a Verizon Wireless based on the co-defendants’ alleged use of technology supplied by the Company, in the District of Delaware. On November16, 2012, Community United filed an amended complaint, which Defendants answered on December 28, 2012. The Company currently does not expect that the outcome of this matter will have a material adverse effect on its financial condition, results of operations or cash flows. However, litigation is inherently unpredictable; therefore, judgments could be rendered or settlements entered that could adversely affect the Company’s operating results or cash flows in a particular period. Though it is reasonably possible that the Company will incur a liability associated with this litigation, the amount, if any such liability, is not reasonably estimable at this time. On June 15, 2011, the Company filed suit against Lodsys, LLC, in the United States District Court for the Northern District of Illinois, seeking a declaratory judgment that the Company’s products do not infringe four patents which Lodsys had previously asserted were infringed by the Company’s customers, as well as a declaratory judgment that those four patents are invalid; that case was transferred to the Eastern District of Wisconsin on October 25, 2011, based on a joint motion filed by the parties. On July 5, 2011, Lodsys countersued the Company and other plaintiffs in similarly-situated declaratory judgment actions, including DriveTime Automotive Group, Inc., ESET, LLC, ForeSee Results, LLC, OpinionLab, Inc., and The New York Times Company, in the United States District Court for the Eastern District of Texas. In the Texas case, Lodsys alleged that the Company infringes two of the patents involved in the co-pending declaratory judgment case, and sought damages for past infringement, and an injunction against future infringement. In July 2012, the parties reached a mutual, confidential agreement resolving all claims and counterclaims against each party. The terms of the agreement did not have a material adverse impact on the Company’s financial position, results of operations or cash flows. In August 2012, Lodsys and the Company filed notices of dismissal with prejudice of all pending claims asserted in both litigations, which the courts endorsed, thereby dismissing with prejudice all claims in these litigations involving the Company. The Company routinely assesses all of its litigation and threatened litigation as to the probability of ultimately incurring a liability, and records its best estimate of the ultimate loss in situations where the Company assesses the likelihood of loss as probable. From time to time, the Company is involved in or subject to legal, administrative and regulatory proceedings, claims, demands and investigations arising in the ordinary course of business, including direct claims brought by or against the Company with respect to intellectual property, contracts, employment and other matters, as well as claims brought against the Company’s customers for whom the Company has a contractual indemnification obligation. The Company accrues for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. In addition, in the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosures related to such matter as appropriate and in compliance with ASC 450. The accruals or estimates, if any, resulting from the foregoing analysis, are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. To the extent there is a reasonable possibility that the losses could exceed the amounts already accrued, the Company will, as applicable, adjust the accrual in the period the determination is made, disclose an estimate of the additional loss or range of loss, indicate that the estimate is immaterial with respect to its financial statements as a whole or, if the amount of such adjustment cannot be reasonably estimated, disclose that an estimate cannot be made. 71 LIVEPERSON, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (In Thousands, Except Share and per Share Data) (9) Legal Matters – (continued) 72

Unaudited Supplementary Financial Information - Quarterly Results Of Operations

12 Months Ended

Dec. 31, 2012

Unaudited Supplementary Financial Information - Quarterly Results Of Operations [Abstract]

Unaudited Supplementary Financial Information - Quarterly Results Of Operations

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(10) Unaudited Supplementary Financial Information — Quarterly Results of Operations

The following table sets forth, for the periods indicated, the Company’s financial information for the eight most recent quarters ended December 31, 2012. In the Company’s opinion, this unaudited information has been prepared on a basis consistent with the annual consolidated financial statements and includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the unaudited information for the periods presented. This information should be read in conjunction with the consolidated financial statements, including the related notes, included herein.

	Quarter Ended
	Dec. 31, 2012		Sept. 30, 2012		June 30, 2012		Mar. 31, 2012		Dec. 31, 2011			Sept. 30, 2011		June 30, 2011		Mar. 31, 2011
Revenue	$	42,475	$	39,670	$	38,505	$	36,759	$	36,509		$	34,347	$	31,851	$	30,382
Operating expenses:
Cost of revenue		10,128		9,036		8,492		7,923		8,047			8,368		8,685		8,095
Product development		8,170		8,005		7,219		6,657		5,563			5,266		5,016		4,377
Sales and marketing		12,795		12,713		13,017		11,089		10,738			9,907		9,379		8,860
General and administrative		8,823		7,316		9,342		6,125		6,009			5,689		5,386		3,960
Amortization of intangibles		119		11		11		77		76			11		11		11
Total operating expenses		40,035		37,081		38,081		31,871		30,433			29,241		28,477		25,303
Income from operations		2,440		2,589		424		4,888		6,076			5,106		3,374		5,079
Other (expense) income:
Financial (expense) income		206		22		(254)		331		(132	)		(780)		208		156
Interest income		15		19		21		16		15			18		16		14
Total other (expense) income, net		221		41		(233)		347		(117	)		(762)		224		170
Income before provision for income taxes		2,661		2,630		191		5,235		5,959			4,344		3,598		5,249
Provision for income taxes		1,169		1,030		51		2,112		2,083			1,609		1,402		2,018
Net income	$	1,492	$	1,600	$	140	$	3,123	$	3,876		$	2,735	$	2,196	$	3,231
Basic net income per common share	$	0.03	$	0.03	$	0.00	$	0.06	$	0.07		$	0.05	$	0.04	$	0.06
Diluted net income per common share	$	0.03	$	0.03	$	0.00	$	0.06	$	0.07		$	0.05	$	0.04	$	0.06
Weighted average shares outstanding used in basic net income per common share calculation		55,892,061		55,688,824		55,146,901		54,419,498		53,563,396			53,109,824		52,735,556		52,080,363
Weighted average shares outstanding used in diluted net income per common share calculation		57,589,248		57,760,868		57,150,256		56,389,729		55,756,350			55,736,089		55,553,247		54,805,222

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details

Summary Of Operations And Significant Accounting Policies (Policy)

12 Months Ended

Dec. 31, 2012

Summary Of Operations And Significant Accounting Policies [Abstract]

Summary Of Operations

(a) Summary of Operations

Principles Of Consolidation

(b) Principles of Consolidation

Use Of Estimates

Cash And Cash Equivalents

(d) Cash and Cash Equivalents

Property And Equipment

(e) Property and Equipment

Impairment Of Long-Lived Assets

(f) Impairment of Long-Lived Assets

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(1) Summary of Operations and Significant Accounting Policies – (continued)

Accounts Receivable

(g) Accounts Receivable

Revenue Recognition

(h) Revenue Recognition

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(1) Summary of Operations and Significant Accounting Policies – (continued)

Income Taxes

(i) Income Taxes

Advertising Costs

(j) Advertising Costs

Financial Instruments And Concentration Of Credit Risk

(k) Financial Instruments and Concentration of Credit Risk

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(1) Summary of Operations and Significant Accounting Policies – (continued)

Stock-Based Compensation

(l) Stock-based Compensation

	December 31,
	2012		2011		2010
Cost of revenue	$	1,579	$	1,023	$	866
Product development expense		2,964		1,703		1,329
Sales and marketing expense		2,878		1,668		1,371
General and administrative expense		3,294		2,377		1,576
Total stock based compensation included in operating expenses	$	10,715	$	6,771	$	5,142


	December 31,
	2012		2011		2010
Dividend yield		0.0%		0.0%		0.0%
Risk-free interest rate		0.6% – 0.9%		0.9% – 3.7%		2.6% – 3.8%
Expected life (in years)		5.0		5.0		5.0
Historical volatility		59.3% – 60.8%		60.1% – 61.5%		60.3% – 61.9%

A description of the methods used in the significant assumptions used to estimate the fair value of stock-based-based compensation awards follows:

Dividend yield – The Company uses 0% as it has never issued dividends and does not anticipate issuing dividends in the near term.

Risk-free interest rate – The Company uses the market yield on U.S. Treasury securities at five years with constant maturity, representing the current expected life of stock options in years.

Expected life – The Company uses historical data to estimate the expected life of a stock option.

Historical volatility – The Company uses a trailing five year from grant date to determine volatility.

Basic And Diluted Net Income Per Share

(m) Basic and Diluted Net Income per Share

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(1) Summary of Operations and Significant Accounting Policies – (continued)

	Year Ended December 31,
	2012		2011		2010
Basic		55,292,597		52,876,999		50,721,880
Effect of assumed exercised options		1,838,444		2,131,743		2,185,661
Diluted		57,131,041		55,008,742		52,907,541

Segment Reporting

(n) Segment Reporting

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(1) Summary of Operations and Significant Accounting Policies – (continued)


	Consolidated		Corporate			Business		Consumer
Revenue:
Hosted services – Business	$	132,310	$	—		$	132,310	$	—
Hosted services – Consumer		15,111		—			—		15,111
Professional services		9,988		—			9,988		—
Total revenue		157,409		—			142,298		15,111
Cost of revenue		35,579		—			33,450		2,129
Sales and marketing		49,614		—			44,087		5,527
Amortization of intangibles		218		—			218		—
Unallocated corporate expenses		61,657		61,657			—		—
Operating income (loss)	$	10,341	$	(61,657	)	$	64,543	$	7,455

	Consolidated		Corporate			Business		Consumer
Revenue:
Hosted services – Business	$	111,934	$	—		$	111,934	$	—
Hosted services – Consumer		14,522		—			—		14,522
Professional services		6,633		—			6,633		—
Total revenue		133,089		—			118,567		14,522
Cost of revenue		33,195		—			29,793		3,402
Sales and marketing		38,884		—			32,690		6,194
Amortization of intangibles		109		—			109		—
Unallocated corporate expenses		41,266		41,266			—		—
Operating income (loss)	$	19,635	$	(41,266	)	$	55,975	$	4,926

	Consolidated		Corporate			Business		Consumer
Revenue:
Hosted services – Business	$	91,262	$	—		$	91,262	$	—
Hosted services – Consumer		14,195		—			—		14,195
Professional services		4,405		—			4,405		—
Total revenue		109,862		—			95,667		14,195
Cost of revenue		29,640		—			25,863		3,777
Sales and marketing		32,835		—			26,184		6,651
Amortization of intangibles		259		—			43		216
Unallocated corporate expenses		32,788		32,788			—		—
Operating income (loss)	$	14,340	$	(32,788	)	$	43,577	$	3,551

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(1) Summary of Operations and Significant Accounting Policies – (continued)

Revenues attributable to domestic and foreign operations follows:


	December 31,
	2012		2011		2010
United States	$	118,208	$	101,519	$	84,725
United Kingdom		22,125		18,250		14,110
Other Countries		17,076		13,320		11,027
Total revenue	$	157,409	$	133,089	$	109,862

Long-lived assets by geographic region follows:


	December 31,
	2012		2011
United States	$	35,711	$	28,626
Israel		23,750		13,167
Australia		10,361		—
United Kingdom		2,600		2,249
Total long-lived assets	$	72,422	$	44,042

Comprehensive Loss

(o) Comprehensive Income (Loss)

Computer Software

(p) Computer Software

Goodwill And Intangible Assets

q) Goodwill and Intangible Assets

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(1) Summary of Operations and Significant Accounting Policies – (continued)

Deferred Rent

(r) Deferred Rent

Foreign Currency Translation

(s) Foreign Currency Translation

Recently Issued Accounting Standards

(t) Recently Issued Accounting Standards

LIVEPERSON, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)

(1) Summary of Operations and Significant Accounting Policies – (continued)

Fair Value of Financial Instruments

(u) Fair Value of Financial Instruments

Summary Of Operations And Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Summary Of Operations And Significant Accounting Policies [Abstract]

Summary Of Stock-Based Compensation Expense Related To Employee Stock Options

	December 31,
	2012		2011		2010
Cost of revenue	$	1,579	$	1,023	$	866
Product development expense		2,964		1,703		1,329
Sales and marketing expense		2,878		1,668		1,371
General and administrative expense		3,294		2,377		1,576
Total stock based compensation included in operating expenses	$	10,715	$	6,771	$	5,142

Weighted Average Assumptions Of Fair Value Options Using Black-Scholes Option-Pricing Model


	December 31,
	2012		2011		2010
Dividend yield		0.0%		0.0%		0.0%
Risk-free interest rate		0.6% – 0.9%		0.9% – 3.7%		2.6% – 3.8%
Expected life (in years)		5.0		5.0		5.0
Historical volatility		59.3% – 60.8%		60.1% – 61.5%		60.3% – 61.9%

Reconciliation Of Shares Used In Calculating Basic And Diluted Earnings Per Share

	Year Ended December 31,
	2012		2011		2010
Basic		55,292,597		52,876,999		50,721,880
Effect of assumed exercised options		1,838,444		2,131,743		2,185,661
Diluted		57,131,041		55,008,742		52,907,541

Summary Of Financial Information By Segment

	Consolidated		Corporate			Business		Consumer
Revenue:
Hosted services – Business	$	132,310	$	—		$	132,310	$	—
Hosted services – Consumer		15,111		—			—		15,111
Professional services		9,988		—			9,988		—
Total revenue		157,409		—			142,298		15,111
Cost of revenue		35,579		—			33,450		2,129
Sales and marketing		49,614		—			44,087		5,527
Amortization of intangibles		218		—			218		—
Unallocated corporate expenses		61,657		61,657			—		—
Operating income (loss)	$	10,341	$	(61,657	)	$	64,543	$	7,455

	Consolidated		Corporate			Business		Consumer
Revenue:
Hosted services – Business	$	111,934	$	—		$	111,934	$	—
Hosted services – Consumer		14,522		—			—		14,522
Professional services		6,633		—			6,633		—
Total revenue		133,089		—			118,567		14,522
Cost of revenue		33,195		—			29,793		3,402
Sales and marketing		38,884		—			32,690		6,194
Amortization of intangibles		109		—			109		—
Unallocated corporate expenses		41,266		41,266			—		—
Operating income (loss)	$	19,635	$	(41,266	)	$	55,975	$	4,926

	Consolidated		Corporate			Business		Consumer
Revenue:
Hosted services – Business	$	91,262	$	—		$	91,262	$	—
Hosted services – Consumer		14,195		—			—		14,195
Professional services		4,405		—			4,405		—
Total revenue		109,862		—			95,667		14,195
Cost of revenue		29,640		—			25,863		3,777
Sales and marketing		32,835		—			26,184		6,651
Amortization of intangibles		259		—			43		216
Unallocated corporate expenses		32,788		32,788			—		—
Operating income (loss)	$	14,340	$	(32,788	)	$	43,577	$	3,551

Revenues Attributable To Domestic And Foreign Operations


	December 31,
	2012		2011		2010
United States	$	118,208	$	101,519	$	84,725
United Kingdom		22,125		18,250		14,110
Other Countries		17,076		13,320		11,027
Total revenue	$	157,409	$	133,089	$	109,862

Long-Lived Assets By Geographic Region


	December 31,
	2012		2011
United States	$	35,711	$	28,626
Israel		23,750		13,167
Australia		10,361		—
United Kingdom		2,600		2,249
Total long-lived assets	$	72,422	$	44,042

Changes In Carrying Amount Of Goodwill

	Total		Business		Consumer
Balance as of December 31, 2011	$	24,090	$	16,066	$	8,024
Adjustments to goodwill:
Engage acquisition		6,073		6,073		—

LookIO acquisition		2,405		2,405		—
Contingent earnout payments		77		77		—
Balance as of December 31, 2012	$	32,645	$	24,621	$	8,024

The changes in the carrying amount of goodwill for the year ended December 31, 2011 are as follows:

	Total		Business		Consumer
Balance as of December 31, 2010	$	24,015	$	15,991	$	8,024
Adjustments to goodwill:
Contingent earnout payments		75		75		—
Balance as of December 31, 2011	$	24,090	$	16,066	$	8,024

Summary Of Intangible Assets

	As of December 31, 2012
	Gross Carrying Amount		Weighted Average Amortization Period		Accumulated Amortization
Amortizing intangible assets:
Technology	$	18,533		3.8 years	$	5,904
Customer relationships		5,061		3.5 years		2,485
Trade names		725		2.7 years		644
Non-compete agreements		486		1.2 years		421
Patents		475		11.0 years		145
Other		235		3.0 years		235
Total	$	25,515			$	9,834

	As of December 31, 2011
	Gross Carrying Amount		Weighted Average Amortization Period		Accumulated Amortization
Amortizing intangible assets:
Technology	$	6,199		3.8 years	$	5,474
Customer relationships		2,400		3.0 years		2,400
Trade names		630		3.0 years		630
Non-compete agreements		410		1.2 years		410
Patents		475		11.0 years		105
Other		235		3.0 years		235
Total	$	10,349			$	9,254

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References + Details

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References + Details

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References + Details

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2012

Engage [Member]

Purchase Price Preliminary Allocation

Cash	$	386


Accounts receivable		3,454
Other currents assets		57
Property and equipment		432
Other assets		104
Intangible assets		3,600
Goodwill		6,073
		14,106
Liabilities assumed		(2,632	)
Deferred tax liability, net		(962	)
Total purchase price consideration	$	10,512

Components Of Intangible Assets

	Weighted Average Useful Life (months)		Amount
Technology		36	$	768
Trade name		12		95
Customer relationships		48		2,661
Non-compete agreements		12		76
			$	3,600

LookIO [Member]

Purchase Price Preliminary Allocation

Intangible assets (technology)	$	767

Goodwill		2,405
		3,172
Deferred tax liability		(288	)
Total purchase price consideration	$	2,884

Balance Sheet Components (Tables)

12 Months Ended

Dec. 31, 2012

Balance Sheet Components [Abstract]

Summary Of Property And Equipment

	December 31,
	2012		2011
Computer equipment and software	$	38,649	$	30,182
Furniture, equipment and building improvements		6,834		4,356
		45,483		34,538
Less accumulated depreciation		27,988		20,659
Total	$	17,495	$	13,879

Accrued Expenses

	December 31,
	2012		2011
Payroll and other employee related costs	$	9,199	$	6,435
Professional services, consulting and other vendor fees		5,698		4,686
Sales commissions		490		446
Contingent earnout (Note 2)		1,660		—
Other		864		452
Total	$	17,911	$	12,019

Stock Options And Employee Stock Purchase Plan (Tables)

12 Months Ended

Dec. 31, 2012

Stock Options And Employee Stock Purchase Plan [Abstract]

Summary Of Stock Option Activity And Weighted Average Exercise Prices

	Options			Weighted Average Exercise Price
Options outstanding at December 31, 2009		8,711,808		$	3.82
Options granted		3,809,380			7.13
Options exercised		(2,843,547	)		4.10
Options cancelled		(860,881	)		5.09
Options outstanding at December 31, 2010		8,816,760			5.04
Options granted		3,642,600			12.24
Options exercised		(2,278,451	)		4.28
Options cancelled		(1,337,496	)		7.03
Options outstanding at December 31, 2011		8,843,413			7.91
Options granted		3,463,500			16.20
Options exercised		(1,634,658	)		5.10
Options cancelled		(830,776	)		10.78
Options outstanding at December 31, 2012		9,841,479		$	11.06
Options exercisable at December 31, 2010		3,097,748		$	3.93
Options exercisable at December 31, 2011		2,805,399		$	4.63
Options exercisable at December 31, 2012		3,220,228		$	6.61

Summary Of The Status Of Nonvested Options

	Shares			Weighted Average Grant-Date Fair Value
Nonvested Shares at January 1, 2011		5,719,012		$	3.13
Granted		3,642,600			6.47
Vested		(1,967,639	)		3.00
Cancelled		(1,355,959	)		3.83
Nonvested Shares at December 31, 2011		6,038,014		$	5.04

Nonvested Shares at January 1, 2012		6,038,014		$	5.04
Granted		3,463,500			8.20
Vested		(2,060,707	)		4.46
Cancelled		(819,556	)		5.69
Nonvested Shares at December 31, 2012		6,621,251		$	6.84

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Domestic And Foreign Components Of Income Before Provision For Income Taxes


	Year Ended December 31,
	2012		2011		2010
United States	$	6,252	$	16,495	$	12,478
Israel		2,819		1,837		1,572
United Kingdom		1,449		818		283
Australia		197		—		—
	$	10,717	$	19,150	$	14,333

Schedule Of Provision For Income Taxes


	Year Ended December 31,
	2012		2011			2010
Current income taxes:
U.S. Federal	$	5,750	$	5,839		$	3,554
State and local		812		600			473
Foreign		671		444			215
Total current income taxes		7,233		6,883			4,242
Deferred income taxes:
U.S. Federal		(2,867)		232			694
State and local		265		(38	)		(60)
Foreign		(269)		35			198
Total deferred income taxes		(2,871)		229			832
Total income taxes	$	4,362	$	7,112		$	5,074

Schedule Of Reconciliations Of Federal Statutory Tax Rate To Effective Income Tax Rate


	Year Ended December 31,
	2012			2011			2010
Federal Statutory Rate		35.00	%		34.48	%		34.30	%
State taxes, net of federal benefit		2.78	%		2.56	%		2.27	%
Non-deductible expenses – ISO		4.82	%		0.47	%		(0.88)	%
Non-deductible expenses – Other		1.15	%		0.51	%		0.43	%
Foreign taxes		(2.92	)%		(0.13	)%		(0.08	)%
Other		(0.12	)%		(0.76	)%		(0.64)	%
Total provision		40.71	%		37.13	%		35.40	%

Schedule Of Federal Deferred Tax Assets And Deferred Tax Liabilities


	2012			2011
Deferred tax assets:
Net operating loss carryforwards	$	2,356		$	2,504
Accounts payable and accrued expenses		2,132			424
Non-cash compensation		4,167			2,582
Goodwill and intangibles amortization		1,123			1,462
Allowance for doubtful accounts		267			260
Net deferred tax assets		10,045			7,232
Deferred tax liabilities:
Plant and equipment		(2,096	)		(2,061	)
Intangibles related to the Engage acquisition		(912)			—
Intangibles related to the LookIO acquisition		(238)			—
Total deferred tax liabilities		(3,246	)		(2,061	)
Net deferred assets	$	6,799		$	5,171

Commitments And Contingencies (Tables)

12 Months Ended

Dec. 31, 2012

Commitments And Contingencies [Abstract]

Future Minimum Lease Payments Under Non-Cancelable Operating Leases


Year ending December 31,	Operating Leases
2013	$	6,689
2014		4,696
2015		3,901
2016		1,189
2017		1,442
Thereafter		3,227
Total minimum lease payments	$	21,144

Unaudited Supplementary Financial Information - Quarterly Results Of Operations (Tables)

12 Months Ended

Dec. 31, 2012

Unaudited Supplementary Financial Information - Quarterly Results Of Operations [Abstract]

Schedule Of Quarterly Results Of Operations

	Quarter Ended
	Dec. 31, 2012		Sept. 30, 2012		June 30, 2012		Mar. 31, 2012		Dec. 31, 2011			Sept. 30, 2011		June 30, 2011		Mar. 31, 2011
Revenue	$	42,475	$	39,670	$	38,505	$	36,759	$	36,509		$	34,347	$	31,851	$	30,382
Operating expenses:
Cost of revenue		10,128		9,036		8,492		7,923		8,047			8,368		8,685		8,095
Product development		8,170		8,005		7,219		6,657		5,563			5,266		5,016		4,377
Sales and marketing		12,795		12,713		13,017		11,089		10,738			9,907		9,379		8,860
General and administrative		8,823		7,316		9,342		6,125		6,009			5,689		5,386		3,960
Amortization of intangibles		119		11		11		77		76			11		11		11
Total operating expenses		40,035		37,081		38,081		31,871		30,433			29,241		28,477		25,303
Income from operations		2,440		2,589		424		4,888		6,076			5,106		3,374		5,079
Other (expense) income:
Financial (expense) income		206		22		(254)		331		(132	)		(780)		208		156
Interest income		15		19		21		16		15			18		16		14
Total other (expense) income, net		221		41		(233)		347		(117	)		(762)		224		170
Income before provision for income taxes		2,661		2,630		191		5,235		5,959			4,344		3,598		5,249
Provision for income taxes		1,169		1,030		51		2,112		2,083			1,609		1,402		2,018
Net income	$	1,492	$	1,600	$	140	$	3,123	$	3,876		$	2,735	$	2,196	$	3,231
Basic net income per common share	$	0.03	$	0.03	$	0.00	$	0.06	$	0.07		$	0.05	$	0.04	$	0.06
Diluted net income per common share	$	0.03	$	0.03	$	0.00	$	0.06	$	0.07		$	0.05	$	0.04	$	0.06
Weighted average shares outstanding used in basic net income per common share calculation		55,892,061		55,688,824		55,146,901		54,419,498		53,563,396			53,109,824		52,735,556		52,080,363
Weighted average shares outstanding used in diluted net income per common share calculation		57,589,248		57,760,868		57,150,256		56,389,729		55,756,350			55,736,089		55,553,247		54,805,222

Summary Of Operations And Significant Accounting Policies (Narrative) (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2012 USD ($) segment $ / shares shares	Dec. 31, 2011 USD ($) $ / shares shares	Dec. 31, 2010 USD ($) $ / shares shares
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items]
Propert, plant and equipment, useful life	3 years
Depreciation	$ 7,329	$ 6,563	$ 5,791
Typical service agreements	12 months
Fees and related labor costs, recognition period (current estimate of term of customer relationship)	48 months
Advertising costs	$ 6,374	$ 6,310	$ 6,132
Weighted average fair value of stock options granted \| $ / shares	$ 8.20	$ 6.47	$ 3.89
Dividend yield	0.00%	0.00%	0.00%
Expected life (in years)	5 years	5 years	5 years
Effect of option to purchase share of common stock on diluted net income per share \| shares	4,865,957	5,235,305	5,294,867
Weighted average exercise price of options \| $ / shares	$ 6.80	$ 4.94	$ 3.61
Shares excluded from computation of earnings per share \| shares	4,975,525	3,608,110	3,524,395
Number of operating segments \| segment	2
Capitalized computer software	$ 2,437	$ 1,086
Foreign currency translation adjustments	19	35	$ 127
Aggregate amortization expense for intangible assets	580	$ 1,029	$ 1,486
Estimated amortization expense in 2013	4,339
Estimated amortization expense in 2014	4,117
Estimated amortization expense in 2015	3,755
Estimated amortization expense in 2016	3,314
Estimated amortization expense in 2017	43
Estimated amortization expenses thereafter	$ 113
Minimum [Member]
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items]
Propert, plant and equipment, useful life	3 years
Typical service agreements termination notice period	30 days
Maximum [Member]
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items]
Propert, plant and equipment, useful life	5 years
Typical service agreements termination notice period	90 days
Accounts Receivable [Member]
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items]
Percentage of accounts receivable accounted for one customer	15.00%	18.00%

Summary Of Operations And Significant Accounting Policies (Summary Of Stock-Based Compensation Expense Related To Employee Stock Options) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 10,715	$ 6,771	$ 5,142
Cost Of Revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	1,579	1,023	866
Product Development Expense [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	2,964	1,703	1,329
Sales And Marketing Expense [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	2,878	1,668	1,371
General And Administrative Expense [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 3,294	$ 2,377	$ 1,576

Summary Of Operations And Significant Accounting Policies (Weighted Average Assumptions Of Fair Value Options Using Black-Scholes Option-Pricing Model) (Details)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Summary Of Operations And Significant Accounting Policies [Abstract]
Dividend yield	0.00%	0.00%	0.00%
Risk-free interest rate, minimum	0.60%	0.90%	2.60%
Risk-free interest rate, maximum	0.90%	3.70%	3.80%
Expected life (in years)	5 years	5 years	5 years
Historical volatility, minimum	59.30%	60.10%	60.30%
Historical volatility, maximum	60.80%	61.50%	61.90%

Summary Of Operations And Significant Accounting Policies (Reconciliation Of Shares Used In Calculating Basic and Diluted Earnings Per Share) (Details) - shares	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Summary Of Operations And Significant Accounting Policies [Abstract]
Basic	55,892,061	55,688,824	55,146,901	54,419,498	53,563,396	53,109,824	52,735,556	52,080,363	55,292,597	52,876,999	50,721,880
Effect of assumed exercised options									1,838,444	2,131,743	2,185,661
Diluted	57,589,248	57,760,868	57,150,256	56,389,729	55,756,350	55,736,089	55,553,247	54,805,222	57,131,041	55,008,742	52,907,541

- Definition

The average number of shares or units issued and outstanding that are used in calculating diluted EPS or earnings per unit (EPU), determined based on the timing of issuance of shares or units in the period.

+ References + Details

- Definition

Number of [basic] shares or units, after adjustment for contingently issuable shares or units and other shares or units not deemed outstanding, determined by relating the portion of time within a reporting period that common shares or units have been outstanding to the total time in that period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7655603&loc=d3e1448-109256

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Weighted-Average Number of Common Shares Outstanding
-URI http://asc.fasb.org/extlink&oid=6528421

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Summary Of Operations And Significant Accounting Policies (Summary Of Financial Information By Segment) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Segment Reporting Information [Line Items]
Hosted services - Business									$ 132,310	$ 111,934	$ 91,262
Hosted services - Consumer									15,111	14,522	14,195
Professional services									9,988	6,633	4,405
Total revenue	$ 42,475	$ 39,670	$ 38,505	$ 36,759	$ 36,509	$ 34,347	$ 31,851	$ 30,382	157,409	133,089	109,862
Cost of revenue	10,128	9,036	8,492	7,923	8,047	8,368	8,685	8,095	35,579	33,195	29,640
Sales and marketing	12,795	12,713	13,017	11,089	10,738	9,907	9,379	8,860	49,614	38,884	32,835
Amortization of intangibles	119	11	11	77	76	11	11	11	218	109	259
Unallocated corporate expenses									61,657	41,266	32,788
Income from operations	$ 2,440	$ 2,589	$ 424	$ 4,888	$ 6,076	$ 5,106	$ 3,374	$ 5,079	10,341	19,635	14,340
Corporate [Member]
Segment Reporting Information [Line Items]
Unallocated corporate expenses									61,657	41,266	32,788
Income from operations									(61,657)	(41,266)	(32,788)
Business [Member]
Segment Reporting Information [Line Items]
Hosted services - Business									132,310	111,934	91,262
Professional services									9,988	6,633	4,405
Total revenue									142,298	118,567	95,667
Cost of revenue									33,450	29,793	25,863
Sales and marketing									44,087	32,690	26,184
Amortization of intangibles									218	109	43
Income from operations									64,543	55,975	43,577
Consumer [Member]
Segment Reporting Information [Line Items]
Hosted services - Consumer									15,111	14,522	14,195
Total revenue									15,111	14,522	14,195
Cost of revenue									2,129	3,402	3,777
Sales and marketing									5,527	6,194	6,651
Amortization of intangibles											216
Income from operations									$ 7,455	$ 4,926	$ 3,551

Summary Of Operations And Significant Accounting Policies (Revenues Attributable To Domestic And Foreign Operations) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Segment Reporting Information [Line Items]
Revenue	$ 42,475	$ 39,670	$ 38,505	$ 36,759	$ 36,509	$ 34,347	$ 31,851	$ 30,382	$ 157,409	$ 133,089	$ 109,862
United States [Member]
Segment Reporting Information [Line Items]
Revenue									118,208	101,519	84,725
United Kingdom [Member]
Segment Reporting Information [Line Items]
Revenue									22,125	18,250	14,110
Other Countries [Member]
Segment Reporting Information [Line Items]
Revenue									$ 17,076	$ 13,320	$ 11,027

Summary Of Operations And Significant Accounting Policies (Long-Lived Assets by Geographic Region) (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Segment Reporting Information [Line Items]
Total long-lived assets	$ 72,422	$ 44,042
United States [Member]
Segment Reporting Information [Line Items]
Total long-lived assets	35,711	28,626
Israel [Member]
Segment Reporting Information [Line Items]
Total long-lived assets	23,750	13,167
Australia [Member]
Segment Reporting Information [Line Items]
Total long-lived assets	10,361
United Kingdom [Member]
Segment Reporting Information [Line Items]
Total long-lived assets	$ 2,600	$ 2,249

Summary Of Operations And Significant Accounting Policies (Changes In Carrying Amount Of Goodwill) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Goodwill [Line Items]
Beginning Balance	$ 24,090	$ 24,015
Contingent earnout payments	77	75
Ending Balance	32,645	24,090
Business [Member]
Goodwill [Line Items]
Beginning Balance	16,066	15,991
Contingent earnout payments	77	75
Ending Balance	24,621	16,066
Consumer [Member]
Goodwill [Line Items]
Beginning Balance	8,024	8,024
Ending Balance	8,024	$ 8,024
Engage [Member]
Goodwill [Line Items]
Adjustments to goodwill	6,073
Engage [Member] \| Business [Member]
Goodwill [Line Items]
Adjustments to goodwill	6,073
LookIO [Member]
Goodwill [Line Items]
Adjustments to goodwill	2,405
LookIO [Member] \| Business [Member]
Goodwill [Line Items]
Adjustments to goodwill	$ 2,405

- Definition

Carrying amount as of the balance sheet date, which is the cumulative amount paid and (if applicable) the fair value of any noncontrolling interest in the acquiree, adjusted for any amortization recognized prior to the adoption of any changes in generally accepted accounting principles (as applicable) and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13770-109266

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 72
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-Clause 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 68
-Subparagraph l
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Summary Of Operations And Significant Accounting Policies (Summary Of Intangible Assets) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 25,515	$ 10,349
Accumulated Amortization	9,834	9,254
Technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 18,533	$ 6,199
Weighted Average Amortization Period	3 years 9 months 18 days	3 years 9 months 18 days
Accumulated Amortization	$ 5,904	$ 5,474
Customer Contracts [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 5,061	$ 2,400
Weighted Average Amortization Period	3 years 6 months	3 years
Accumulated Amortization	$ 2,485	$ 2,400
Trade Names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 725	$ 630
Weighted Average Amortization Period	2 years 8 months 12 days	3 years
Accumulated Amortization	$ 644	$ 630
Non-compete Agreements [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 486	$ 410
Weighted Average Amortization Period	1 year 2 months 12 days	1 year 2 months 12 days
Accumulated Amortization	$ 421	$ 410
Patents [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 475	$ 475
Weighted Average Amortization Period	11 years	11 years
Accumulated Amortization	$ 145	$ 105
Other [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 235	$ 235
Weighted Average Amortization Period	3 years	3 years
Accumulated Amortization	$ 235	$ 235

Acquisitions (Narrative) (Details) - USD ($) $ in Thousands		1 Months Ended		12 Months Ended
Acquisitions (Narrative) (Details) - USD ($) $ in Thousands	Jun. 13, 2012	Nov. 30, 2012	May 31, 2012	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Nov. 09, 2012
Business Acquisition [Line Items]
Costs related to earn out litigation				$ 77	$ 75	$ 95
Business acquisition, equity interest issued or issuable				2,050,000
Business acquisition, shares of common stock issued				1,127,985
Business acquisition, value of shares of common stock issued				$ 8,894
Business acquisition, cash paid	$ 900
Business acquisition, purchase price				20
Cash consideration to acquire asset			$ 10,301
Acquisition costs included in intangible assets				3,600
NuConomy [Member]
Business Acquisition [Line Items]
Technology asset acquired, aggregate cash consideration				$ 800
Engage [Member]
Business Acquisition [Line Items]
Acquisition costs incurred to acquire entity		$ 494
Business acquisition, acquisition Date				Nov. 09, 2012
Business acquisition, purchase price							$ 10,512
Acquisition costs included in intangible assets							3,600
Assets acquired liabilities assumed, net							839
Potential shares of common stock, value							$ 1,660
Amadesa [Member]
Business Acquisition [Line Items]
Business acquisition, acquisition Date				May 31, 2012
Acquisition costs included in intangible assets				$ 497
LookIO [Member]
Business Acquisition [Line Items]
Business acquisition, shares of common stock issued	109,517
Business acquisition, value of shares of common stock issued	$ 1,984
Acquisition costs incurred to acquire entity				$ 157
Business acquisition, acquisition Date				Jun. 13, 2012
Business acquisition, purchase price	2,884
Acquisition costs included in intangible assets	$ 767
Potential shares of common stock in addition to purchase price	30,422			30,422
Potential shares of common stock, value				$ 551

Acquisitions (Purchase Price Preliminary Allocation) (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Nov. 09, 2012	Jun. 13, 2012
Business Acquisition [Line Items]
Intangible assets	$ 3,600
Total purchase price consideration	$ 20
Engage [Member]
Business Acquisition [Line Items]
Cash		$ 386
Accounts receivable		3,454
Other currents assets		57
Property and equipment		432
Other assets		104
Intangible assets		3,600
Goodwill		6,073
Total assets acquired		14,106
Liabilities assumed		(2,632)
Deferred tax liability, net		(962)
Total purchase price consideration		$ 10,512
LookIO [Member]
Business Acquisition [Line Items]
Intangible assets			$ 767
Goodwill			2,405
Total assets acquired			3,172
Deferred tax liability, net			(288)
Total purchase price consideration			$ 2,884

Acquisitions (Components of Intangible Assets) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2012 USD ($)
Business Acquisition [Line Items]
Intangible assets	$ 3,600
Technology [Member]
Business Acquisition [Line Items]
Intangible assets	$ 768
Weighted Average Useful Life (months)	36 months
Trade Names [Member]
Business Acquisition [Line Items]
Intangible assets	$ 95
Weighted Average Useful Life (months)	12 months
Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets	$ 2,661
Weighted Average Useful Life (months)	48 months
Non-compete Agreements [Member]
Business Acquisition [Line Items]
Intangible assets	$ 76
Weighted Average Useful Life (months)	12 months

Balance Sheet Components (Summary Of Property And Equipment) (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Property, Plant and Equipment [Line Items]
Property plant and equipment gross	$ 45,483	$ 34,538
Less accumulated depreciation	27,988	20,659
Total	17,495	13,879
Computer Equipment And Software [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment gross	38,649	30,182
Furniture, Equipment And Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment gross	$ 6,834	$ 4,356

- Definition

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

+ References + Details

Balance Sheet Components (Accrued Expenses) (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Balance Sheet Components [Abstract]
Payroll and other employee related costs	$ 9,199	$ 6,435
Professional services consulting and other vendor fees	5,698	4,686
Sales commissions	490	446
Contingent earnout (Note 2)	1,660
Other	864	452
Total	$ 17,911	$ 12,019

- Definition

Carrying value as of the balance sheet date of obligations incurred through that date and payable for professional fees, such as for legal and accounting services received. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

- Definition

Carrying value as of the balance sheet date of obligations incurred through that date and payable for sales commissions. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

- Definition

Carrying value as of the balance sheet date of obligations incurred through that date and payable arising from transactions not otherwise specified in the taxonomy. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

Capitalization (Narrative) (Details) $ in Thousands	12 Months Ended
Capitalization (Narrative) (Details) $ in Thousands	Dec. 31, 2012 USD ($)
Capitalization [Abstract]
Stock repurchase program, authorized amount	$ 20,000

Stock Options And Employee Stock Purchase Plan (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to nonvested share-based compensation arrangements	$ 39,874
Total intrinsic value of nonvested options	10,105	$ 19,839	$ 32,420
Total value of stock options exercised	16,252	17,174	11,050
Total intrinsic value of options exercisable	20,815	21,890	22,491
Total intrinsic value of all outstanding options	$ 30,920	$ 41,729	$ 54,911
1998 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for issuance	5,850,000
2000 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for issuance	10,000,000
Increase in number of shares of common stock available for issuance	4,150,000
2009 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in number of shares of common stock available for issuance	6,000,000
Stock option term	10 years
Shares reserved for issuance	15,425,000
Weighted average recognition period of unrecognized compensation cost	2 years 1 month 6 days
Amended 2009 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for issuance	23,817,744
Increase in number of shares of common stock available for issuance	4,250,000
2000 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for issuance	450,000
2010 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for issuance	1,000,000
Shares available for grant	849,000

Stock Options And Employee Stock Purchase Plan (Summary Of Stock Option Activity And Weighted Average Exercise Prices) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Options
Options outstanding, beginning balance	(8,843,413)	8,816,760	8,711,808
Options granted	3,463,500	3,642,600	3,809,380
Options exercised	(1,634,658)	(2,278,451)	(2,843,547)
Options cancelled	(830,776)	(1,337,496)	(860,881)
Options outstanding, ending balance	(9,841,479)	(8,843,413)	8,816,760
Options exercisable	3,220,228	2,805,399	3,097,748
Weighted Average Exercise Price
Options outstanding, beginning balance	$ 7.91	$ 5.04	$ 3.82
Options granted	16.20	12.24	7.13
Options exercised	5.10	4.28	4.10
Options cancelled	10.78	7.03	5.09
Options outstanding, ending balance	11.06	7.91	5.04
Options exercisable	$ 6.61	$ 4.63	$ 3.93

Stock Options And Employee Stock Purchase Plan (Summary Of The Status Of Nonvested Options) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Shares
Nonvested Shares, beginning balance	6,038,014	5,719,012
Granted	3,463,500	3,642,600
Vested	(2,060,707)	(1,967,639)
Cancelled	(819,556)	(1,355,959)
Nonvested Shares, ending balance	(6,621,251)	6,038,014
Weighted Average Grant-Date Fair Value
Nonvested Shares, beginning balance	$ 5.04	$ 3.13
Granted	8.20	6.47
Vested	4.46	3.00
Cancelled	5.69	3.83
Nonvested Shares, ending balance	$ 6.84	$ 5.04

Valuation And Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	$ 688
Additions Charged to Costs and Expenses	20
Balance at End of Period	708	$ 688
Allowance For Doubtful Accounts [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	$ 688	561	$ 395
Additions Charged to Costs and Expenses		290	166
Deductions /Write-Offs		(163)
Balance at End of Period		$ 688	$ 561

Income Taxes (Narrative) (Details) $ in Thousands	Dec. 31, 2012 USD ($)
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	$ 6,655
Proficient [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	$ 5,616

Income Taxes (Domestic And Foreign Components Of Income Before Provision For Income Taxes) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Tax Contingency [Line Items]
United States									$ 6,252	$ 16,495	$ 12,478
Income before provision for income taxes	$ 2,661	$ 2,630	$ 191	$ 5,235	$ 5,959	$ 4,344	$ 3,598	$ 5,249	10,717	19,150	14,333
Israel [Member]
Income Tax Contingency [Line Items]
Foreign									2,819	1,837	1,572
United Kingdom [Member]
Income Tax Contingency [Line Items]
Foreign									1,449	$ 818	$ 283
Australia [Member]
Income Tax Contingency [Line Items]
Foreign									$ 197

Income Taxes (Schedule Of Provision For Income Taxes) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Taxes [Abstract]
Current income taxes, U.S. Federal									$ 5,750	$ 5,839	$ 3,554
Current income taxes, State and local									812	600	473
Current income taxes, Foreign									671	444	215
Total current income taxes									7,233	6,883	4,242
Deferred income taxes, U.S. Federal									(2,867)	232	694
Deferred income taxes, State and local									265	(38)	(60)
Deferred income taxes, Foreign									(269)	35	198
Total deferred income taxes									(2,871)	229	832
Total income taxes	$ 1,169	$ 1,030	$ 51	$ 2,112	$ 2,083	$ 1,609	$ 1,402	$ 2,018	$ 4,362	$ 7,112	$ 5,074

Income Taxes (Schedule Of Reconciliations Of Federal Statutory Tax Rate To Effective Income Tax Rate) (Details)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Taxes [Abstract]
Federal Statutory Rate	35.00%	34.48%	34.30%
State taxes, net of federal benefit	2.78%	2.56%	2.27%
Non-deductible expenses - ISO	4.82%	0.47%	(0.88%)
Non-deductible expenses - Other	1.15%	0.51%	0.43%
Foreign taxes	(2.92%)	(0.13%)	(0.08%)
Other	(0.12%)	(0.76%)	(0.64%)
Total provision	40.71%	37.13%	35.40%

Income Taxes (Schedule Of Federal Deferred Tas Assets And Deferred Tax Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Net operating loss carryforwards	$ 2,356	$ 2,504
Accounts payable and accrued expenses	2,132	424
Non-cash compensation	4,167	2,582
Goodwill and intangibles amortization	1,123	1,462
Allowance for doubtful accounts	267	260
Net deferred tax assets	10,045	7,232
Plant and equipment	(2,096)	(2,061)
Total deferred tax liabilities	(3,246)	(2,061)
Net deferred assets	6,799	$ 5,171
Engage [Member]
Intangible related to acquisition	(912)
LookIO [Member]
Intangible related to acquisition	$ (238)

Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Commitments And Contingencies [Abstract]
Rental expense for operating leases	$ 7,365	$ 6,615	$ 6,428
Capitalized cost related to Company's co-location facility	26,000
Expected total capital expenditure	$ 12,000
Defined benefit plan employer matching contribution on first five percent of employee compensation	50.00%
Percentage of employees' eligible compensation for employer matching contribution	5.00%
Defined benefit plan employer contribution limit	$ 6
Defined benefit plan employer contribution vesting period	5 years
Defined benefit plan employer contribution	$ 682
Compensation	$ 682	$ 545	$ 436

Commitments And Contingencies (Future Minimum Lease Payments Under Non-Cancelable Operating Leases) (Details) $ in Thousands	Dec. 31, 2012 USD ($)
Commitments And Contingencies [Abstract]
2013	$ 6,689
2014	4,696
2015	3,901
2016	1,189
2017	1,442
Thereafter	3,227
Total minimum lease payments	$ 21,144

Unaudited Supplementary Financial Information - Quarterly Results Of Operations (Schedule Of Quarterly Results Of Operations) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Unaudited Supplementary Financial Information - Quarterly Results Of Operations [Abstract]
Revenue	$ 42,475	$ 39,670	$ 38,505	$ 36,759	$ 36,509	$ 34,347	$ 31,851	$ 30,382	$ 157,409	$ 133,089	$ 109,862
Operating expenses:
Cost of revenue	10,128	9,036	8,492	7,923	8,047	8,368	8,685	8,095	35,579	33,195	29,640
Product development	8,170	8,005	7,219	6,657	5,563	5,266	5,016	4,377	30,051	20,222	15,711
Sales and marketing	12,795	12,713	13,017	11,089	10,738	9,907	9,379	8,860	49,614	38,884	32,835
General and administrative	8,823	7,316	9,342	6,125	6,009	5,689	5,386	3,960	31,606	21,044	17,077
Amortization of intangibles	119	11	11	77	76	11	11	11	218	109	259
Total operating expenses	40,035	37,081	38,081	31,871	30,433	29,241	28,477	25,303	147,068	113,454	95,522
Income from operations	2,440	2,589	424	4,888	6,076	5,106	3,374	5,079	10,341	19,635	14,340
Other income (expense):
Financial (expense) income	206	22	(254)	331	(132)	(780)	208	156	305	(548)	(106)
Interest income	15	19	21	16	15	18	16	14	71	63	99
Total other income (expense), net	221	41	(233)	347	(117)	(762)	224	170	376	(485)	(7)
Income before provision for income taxes	2,661	2,630	191	5,235	5,959	4,344	3,598	5,249	10,717	19,150	14,333
Provision for income taxes	1,169	1,030	51	2,112	2,083	1,609	1,402	2,018	4,362	7,112	5,074
Net income	$ 1,492	$ 1,600	$ 140	$ 3,123	$ 3,876	$ 2,735	$ 2,196	$ 3,231	$ 6,355	$ 12,038	$ 9,259
Basic net income per common share	$ 0.03	$ 0.03	$ 0.00	$ 0.06	$ 0.07	$ 0.05	$ 0.04	$ 0.06	$ 0.11	$ 0.23	$ 0.18
Diluted net income per common share	$ 0.03	$ 0.03	$ 0.00	$ 0.06	$ 0.07	$ 0.05	$ 0.04	$ 0.06	$ 0.11	$ 0.22	$ 0.18
Weighted average shares outstanding used in basic net income per common share calculation	55,892,061	55,688,824	55,146,901	54,419,498	53,563,396	53,109,824	52,735,556	52,080,363	55,292,597	52,876,999	50,721,880
Weighted average shares outstanding used in diluted net income per common share calculation	57,589,248	57,760,868	57,150,256	56,389,729	55,756,350	55,736,089	55,553,247	54,805,222	57,131,041	55,008,742	52,907,541